DETROIT (Reuters) – The impact of the global semiconductor shortage on the auto industry spread on Saturday, as Stellantis warned its highly profitable pickup trucks were hit, while Ford Motor Co said it would cut more US production.
Stellantis, the world’s fourth-largest automaker, said it will build and hold its Ram 1500 Classic trucks for final assembly at its assembly plants in Warren, Michigan and Saltillo, Mexico. When chips become available, the vehicles are completed and shipped to dealers.
The action will last “several weeks,” said a Stellantis spokeswoman, who declined to reveal how many trucks would be affected.
The shortage of chips, which has hit car manufacturers worldwide, is the result of a combination of factors. Automakers closed North American factories for two months during last year’s COVID-19 pandemic and canceled chip orders. Meanwhile, the demand for chips from the consumer electronics industry increased as people worked from home and played video games. Now car manufacturers have to compete for chips.
Automakers have repeatedly said they will prioritize chips for their most profitable vehicles, but the impact on the Ram, as well as previous reports from Ford and General Motors Co of lost or impacted production of their full-size trucks, show that the shortage affects companies. where it hurts.
Carlos Tavares, CEO of Stellantis, said earlier this month that the issues may not be fully resolved by the second half of 2021, as some auto rivals have pointed out, describing stocks as the “great unknown” to 2021 revenues.
Ford said Saturday that it will shut down its Ohio assembly plant next week, while the Kentucky Truck Plant in Louisville will run only two of its three shifts. Both plants will go back into full production in the week of March 29.
The U.S. automaker said the latest move is part of an earlier forecast that the deficit could hit profits by $ 1 billion to $ 2.5 billion by 2021.
On Thursday, Ford said it would assemble its flagship, highly profitable F-150 pickup truck and Edge SUVs in North America without certain parts and then hold them for “several weeks” until they can be completed and shipped, impacting is on “thousands” of vehicles. It also said it would shut down production at plants in Louisville, Kentucky and Cologne, Germany.
Reporting by Ben Klayman; Editing by Daniel Wallis