A United Auto Worker member is leaving the Fiat Chrysler Automobiles Warren truck plant after the first shift on May 18, 2020 in Warren, Michigan.
Gregory Shamus | Getty Images
A global shortage of semiconductor chips is forcing Stellantis to temporarily close five North American plants starting next week, the company confirmed on Friday afternoon.
The affected plants are found in Illinois, Michigan, Mexico and two in Ontario, Canada. They build a range of products for the company – from older Ram 1500 trucks and Jeep models to minivans and Dodge and Chrysler cars. The facilities, which were previously part of Fiat Chrysler, are expected to be closed from Monday to early or mid-April, according to the company.
“Stellantis continues to work closely with our suppliers to mitigate the impact of production caused by the various supply chain problems facing our industry,” the company said in an email to CNBC. A Stellantis spokeswoman declined to disclose how many production units are expected to be lost.
Semiconductors are key components used in infotainment, power steering and braking of new vehicles, among other systems. Suppliers have moved semiconductors away from the auto industry as several factories closed last year due to Covid.
The consulting firm AlixPartners estimates that the chip deficit will reduce revenues from the global automotive industry by $ 60.6 billion this year.
Lack affects each car manufacturer differently. Several manufacturers, including General Motors, Ford Motor and Chinese start-up Nio, also announced production cuts this week or plan to extend downtime at facilities that have already been affected.
Vehicles affected by Stellantis’ production shutdowns include the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger cars, Jeep Cherokee and Compass SUVs and the Ram 1500 Classic pickup. A newer version of the Ram 1500 remains in production at another factory in Michigan.
Stellantis is the merged car manufacturer of Fiat Chrysler and the French group PSA. In the US, its core brands include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.