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
A global shortage of semiconductor chips is forcing Stellantis to temporarily close five North American factories starting next week, the company confirmed Friday afternoon.
The affected factories are located in Illinois, Michigan, Mexico and two in Ontario, Canada. They build a range of products for the company – from older Ram 1500 pickups and Jeep models to minivans and Dodge and Chrysler cars. The facilities, formerly part of Fiat Chrysler, are expected to be closed Monday to early or mid-April, the company said.
“Stellantis continues to work closely with our suppliers to reduce the manufacturing impact caused by the various supply chain issues facing our industry,” the company said in an emailed statement to CNBC. A Stellantis spokeswoman declined to disclose how many production units are expected to be lost.
Semiconductors are key components that are used, among other things, in the infotainment, power steering and braking of new vehicles. Suppliers sent semiconductors away from the automotive industry as several factories were closed last year due to Covid.
Consulting firm AlixPartners estimates that the chip shortage will reduce $ 60.6 billion in revenues from the global auto industry this year.
The shortage has a different impact on every car manufacturer. Several manufacturers, including General Motors, Ford Motor and Chinese EV start-up Nio, also announced production cuts or plans to extend downtime at facilities already hit by the shortage this week.
Vehicles affected by the Stellantis production shutdown 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 A newer version of the Ram 1500 remains in production at a different Michigan facility.
Stellantis is the merged car manufacturer of Fiat Chrysler and the France-based Groupe PSA. In the US, the main brands are Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.