Jeep, Dodge maker Stellantis temporarily closing five North American plants due to chip shortage

A United Auto Worker member leaves the Fiat Chrysler Vehicles Warren Truck Plant after the first work shift on Might maybe well perchance 18, 2020 in Warren, Michigan.

Gregory Shamus | Getty Photos

A global scarcity of semiconductor chips is forcing Stellantis to temporally discontinuance five North American vegetation starting subsequent week, the company confirmed Friday afternoon.

The impacted vegetation are in Illinois, Michigan, Mexico and two in Ontario, Canada. They make an array of merchandise for the company – from older Ram 1500 pickup trucks and Jeep models to minivans and Dodge and Chrysler vehicles. The companies and products, beforehand fragment of Fiat Chrysler, are anticipated to be closed from Monday by early or mid-April, in response to the company

“Stellantis continues to work intently with our suppliers to mitigate the manufacturing impacts attributable to the a lot of present chain disorders going by our change,” the company acknowledged in an emailed commentary to CNBC. A spokeswoman for Stellantis declined to thunder how many models of production are anticipated to be lost.

Semiconductors are key parts venerable in the infotainment, vitality steering and braking of unique vehicles, amongst assorted systems. Suppliers directed semiconductors a ways from the car change as a couple of vegetation shut down final year due to Covid.

Consulting company AlixPartners estimates the chip scarcity will slice $60.6 billion in income from the worldwide car change this year.

The scarcity is impacting every automaker in a single more intention. Several manufacturers, including Total Motors, Ford Motor and Chinese language EV open-up Nio, this week also announced production cuts or plans to lengthen downtime at companies and products that accept as true with already been impacted by the inability.

Vehicles impacted by Stellantis’ production halts encompass the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger vehicles, Jeep Cherokee and Compass SUVs and Ram 1500 Traditional pickup. A more fresh model of the Ram 1500 stays in production at a definite Michigan plant.

Stellantis is the merged automaker of Fiat Chrysler and France-basically basically basically based Groupe PSA. Within the U.S., its core brands encompass Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.