A Shared Auto Worker member leaves the Fiat Chrysler Automobiles Warren Truck Plant after the first make shift on May 18, 2020 in Warren, Michigan.
Gregory Shamus | Getty Images
A global shortage of semiconductor chips is arm-twisting Stellantis to temporally close five North American plants starting next week, the company confirmed Friday afternoon.
The influenced plants are in Illinois, Michigan, Mexico and two in Ontario, Canada. They build an array of products for the company – from older Ram 1500 pickup commodities and Jeep models to minivans and Dodge and Chrysler cars. The facilities, formerly part of Fiat Chrysler, are expected to be shut from Monday through early or mid-April, according to the company
“Stellantis continues to work closely with our suppliers to lighten the manufacturing impacts caused by the various supply chain issues facing our industry,” the company said in an emailed announcement to CNBC. A spokeswoman for Stellantis declined to disclose how many units of production are expected to be lost.
Semiconductors are key components utilized in the infotainment, power steering and braking of new vehicles, among other systems. Suppliers directed semiconductors away from the automotive exertion as multiple plants shut down last year due to Covid.
Consulting firm AlixPartners estimates the chip want will cut $60.6 billion in revenue from the global automotive industry this year.
The shortage is impacting every automaker differently. Specific manufacturers, including General Motors, Ford Motor and Chinese EV start-up Nio, this week also announced forming cuts or plans to extend downtime at facilities that have already been affected.
Vehicles impacted by Stellantis’ work halts include the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger cars, Jeep Cherokee and Compass SUVs and Ram 1500 Prototype pickup. A newer version of the Ram 1500 remains in production at a different Michigan plant.
Stellantis is the merged automaker of Fiat Chrysler and France-based Groupe PSA. In the U.S., its middle brands include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.