A United Auto Worker member leaves the Fiat Chrysler Automobiles Warren Truck plant after the first shift on May 18, 2020 in Warren, Michigan.
Gregory Shamus | Getty Images
The global shortage of semiconductor chips is forcing Stellantis to temporarily close five plants in North America starting next week, the company confirmed on Friday afternoon.
The impacted plants are in Illinois, Michigan, Mexico and two in Ontario, Canada. They build a series of products for the company – from Ram 1500 pickups and Jeep models to minivans and Dodge and Chrysler cars. The facilities, which were previously part of Fiat Chrysler, are expected to close from Monday until early April or mid-April, according to the company
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain problems that our industry faces,” said the company in a statement emailed to CNBC. A Stellantis spokeswoman declined to reveal how many production units are to be lost.
Semiconductors are key components used in infotainment, power steering and braking of new vehicles, among other systems. Suppliers have directed semiconductors away from the automotive industry, as several plants closed last year due to Covid.
Consulting firm AlixPartners estimates that the chip shortage will reduce $ 60.6 billion in revenue from the global automotive industry this year.
The scarcity is affecting each automaker differently. Several manufacturers, including General Motors, Ford Motor and Chinese EV start-up Nio, also announced this week production cuts or plans to extend downtime on facilities that have already been affected by the shortage.
Vehicles affected by the Stellantis production stops include the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger cars, Jeep Cherokee and Compass SUVs and Ram 1500 Classic pickup. A newer version of the Ram 1500 remains in production at a different plant in Michigan.
Stellantis is the automaker resulting from the merger of Fiat Chrysler and Groupe PSA, based in France. In the United States, its main brands include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.