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Chip shortage affects Stellants pickup truck production, Ford also cuts production

by:Yisheng      2021-06-06

According to foreign media reports, the impact of the global chip shortage on the automotive industry is expanding. Stellattis warned on March 20 that the production of its high-margin pickup trucks has been affected. Ford also said that it will reduce more in the United States. More output.




Ram 1500 Classic (Image source: Ram)


Stellantis, the world’s fourth-largest automaker, said its assembly plants in Warren, Michigan and Saltillo, Mexico will continue to assemble Ram 1500 Classic trucks without chips. When the chip supply resumes, the vehicle will be finalized and shipped to the dealer. A Stellantis spokesperson said the operation will continue for 'several weeks


On March 20, Ford said it will temporarily close its assembly plant in Ohio next week, and the Kentucky truck plant in Louisville will also change from a three-shift system to a two-shift system. Both factories will resume full production in the week of March 29. Ford said the move was part of its previous expectations that the shortage of chips may hit the company's 2021 profits by between $1 billion and $2.5 billion.


The shortage of chips has caused an impact on global automakers, and this situation is caused by a combination of many factors. During the pandemic last year, North American car production plants stopped production for two months, so many car companies cancelled orders for chips. At the same time, as people stay at home, consumer demand for laptops and game consoles has skyrocketed, leading to a surge in demand for chips in the consumer electronics industry. Now, after the resumption of production, automakers have to compete for chip supply.


Previously, many car companies stated that they will give priority to providing chips for the most profitable models. However, the suspension of Ram trucks and the previous impact on Ford and GM full-size trucks indicate that the shortage of chips has already affected the cars. The company has had a serious impact.


Stellantis CEO Carlos Tavares said earlier this month that the problem of chip shortages may not be completely resolved in the second half of 2021, as some competitors claim. Tang Weishi also called it a 'significant unknown factor' in the company's 2021 revenue.

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