Stellantis Pickups Hit, Ford Cuts Manufacturing Due To International Chip Scarcity

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DETROIT: The affect of the worldwide semiconductor scarcity on the auto trade unfold on Saturday, as Stellantis warned its extremely worthwhile pickup vans have been hit, whereas Ford Motor Co stated it could minimize extra U.S. manufacturing.

Stellantis, the world’s fourth largest automaker, stated it can construct and maintain for remaining meeting its Ram 1500 Traditional vans at its Warren, Michigan, and Saltillo, Mexico, meeting vegetation. When chips turn into accessible, the automobiles will probably be accomplished and shipped to sellers.

The motion will final “quite a few weeks,” a Stellantis spokeswoman stated, declining to disclose what number of vans could be affected.

The chip scarcity, which has hit automakers globally, stems from a confluence of things. Carmakers shut North American vegetation for 2 months in the course of the COVID-19 pandemic final yr and canceled chip orders. In the meantime, demand for chips surged from the patron electronics trade as individuals labored from residence and performed video video games. Now carmakers should compete for chips.

Carmakers have repeatedly stated they may prioritize chips for his or her most worthwhile automobiles, however the affect on the Ram, in addition to earlier stories by Ford and Normal Motors Co of misplaced or impacted manufacturing of their full-size vans, exhibits the scarcity is hitting firms the place it hurts.

Stellantis Chief Government Carlos Tavares stated earlier this month the issues may not be absolutely resolved by the second half of 2021, as some auto rivals have flagged, describing provides because the “huge unknown” for revenues in 2021.

Ford stated Saturday it can idle its Ohio meeting plant subsequent week, whereas its Kentucky Truck Plant in Louisville will solely work two of three shifts. Each vegetation will return to full manufacturing the week of March 29.

The U.S. automaker stated the most recent motion is a part of a previous forecast it made that the scarcity may hit 2021 income by $1 bln to $2.5 bln.

On Thursday, Ford stated it could assemble its flagship, extremely worthwhile F-150 pickup truck in addition to Edge SUVs in North America with out sure elements after which maintain them “for quite a few weeks” till they are often accomplished and shipped, affecting “hundreds” of automobiles. It additionally stated it could idle manufacturing at vegetation in Louisville, Kentucky, and Cologne, Germany.

Disclaimer: This submit has been auto-published from an company feed with none modifications to the textual content and has not been reviewed by an editor



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