DETROIT (Reuters) – The impact of the global shortage of semiconductors on the automotive industry spread on Saturday when Stellantis warned that its highly profitable pickups had been hit, while Ford Motor Co said it would reduce more U.S. production.
Stellantis, the world’s fourth largest carmaker, has said it will build and maintain its Ram 1500 Classic trucks for its assembly plants in Warren, Michigan and Saltillo, Mexico. When chips are available, the vehicles will be completed and shipped to dealers.
The action will take several weeks, “said a Stellantis spokesman, who did not want to comment on how many trucks were affected.
The shortage of chips, which has hit carmakers worldwide, stems from a confluence of factors. Carmakers shut down North American plants for two months last year during the COVID-19 pandemic and canceled chip orders. Meanwhile, the demand for chips from the consumer electronics industry has risen as people work from home and play video games. Now carmakers have to compete for chips.
Car manufacturers have repeatedly said they will prioritize chips for their most profitable vehicles, but the impact on Aries, as well as previous reports from Ford and General Motors Co. about lost or affected production of their large trucks, show that the shortage is hitting businesses where it is hurt.
Stellantis CEO Carlos Tavares said earlier this month that the problems in the second half of 2021 may not be completely resolved as some competitors reported it, describing the stocks as the “big unknown” for revenue in 2021.
Ford said on Saturday that it will shut down its assembly plant in Ohio next week, while the Kentucky Truck Plant in Louisville will operate only two or three shifts. Both plants will return to full production in the week of March 29.
The US carmaker said the latest action was part of a previous forecast made that the 2021 deficit could reach a profit of $ 1 billion to $ 2.5 billion.
Ford said on Thursday that it would assemble its flagship, highly profitable F-150 pickup truck as well as Edge SUVs in North America without certain parts and then hold it for a number of weeks until it could be completed and shipped, which has an impact on ‘thousands’ of vehicles. It is also said that it will ring production at the plants in Louisville, Kentucky and Cologne, Germany.
Reported by Ben Klayman; Edited by Daniel Wallis