Stellantis closing five North American plants due to chip shortage

A United Vehicle Worker member leaves the Fiat Chrysler Cars Warren Truck Plant just after the first function shift on May 18, 2020 in Warren, Michigan.

Gregory Shamus | Getty Illustrations or photos

A global scarcity of semiconductor chips is forcing Stellantis to temporally shut 5 North American plants commencing up coming week, the business confirmed Friday afternoon.

The impacted vegetation are in Illinois, Michigan, Mexico and two in Ontario, Canada. They make an array of products and solutions for the company – from older Ram 1500 pickup trucks and Jeep products to minivans and Dodge and Chrysler vehicles. The facilities, formerly section of Fiat Chrysler, are envisioned to be shut from Monday by early- or mid-April, in accordance to the organization

“Stellantis continues to operate carefully with our suppliers to mitigate the manufacturing impacts caused by the numerous supply chain difficulties struggling with our market,” the company stated in an emailed statement to CNBC. A spokeswoman for Stellantis declined to disclose how a lot of units of creation are envisioned to be missing.

Semiconductors are critical factors applied in the infotainment, ability steering and braking of new cars, among other techniques. Suppliers directed semiconductors away from the automotive marketplace as a number of crops shut down past 12 months due to Covid.

Consulting company AlixPartners estimates the chip scarcity will cut $60.6 billion in revenue from the world wide automotive marketplace this yr.

The lack is impacting every automaker in a different way. Quite a few manufacturers, which include Typical Motors, Ford Motor and Chinese EV commence-up Nio, this 7 days also announced production cuts or designs to prolong downtime at amenities that have currently been impacted by the shortage.

Autos impacted by Stellantis’ manufacturing halts contain the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger cars, Jeep Cherokee and Compass SUVs and Ram 1500 Traditional pickup. A more recent model of the Ram 1500 remains in creation at a distinctive Michigan plant.

Stellantis is the merged automaker of Fiat Chrysler and France-based Groupe PSA. In the U.S., its core manufacturers incorporate Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.