Stellantis pickups hit, Ford cuts production amid global chip shortage

DETROIT (Reuters) – The impact of the global semiconductor shortage on the auto industry spread on Saturday, as Stellantis warned its highly profitable vans were hit, while Ford Motor Co said it would further reduce US production.

Stellantis, the world’s fourth-largest automaker, said it will build and retain its Ram 1500 Classic trucks for final assembly at its assembly plants in Warren, Mich. And Saltillo, Mexico. When the chips are available, the vehicles will be completed and shipped to dealers.

The action will last “several weeks,” said a spokeswoman for Stellantis, refusing to reveal the number of trucks that would be affected.

The chip shortage, which has plagued automakers around the world, stems from a confluence of factors. Automakers closed North American factories for two months during the COVID-19 pandemic last year and canceled chip orders. Meanwhile, the demand for chips increased from the consumer electronics industry as people worked from home and played video games. Automakers now have to compete for chips.

Automakers have repeatedly stated that 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 regarding the loss or impact of the production of their full-size trucks, shows that the shortage is hitting companies. where it hurts.

Stellantis chief executive Carlos Tavares said earlier this month that the issues may not be fully resolved by the second half of 2021, as some auto competitors have reported, describing the supplies as ” big unknown ”of revenues in 2021.

Ford said on Saturday it would idle its Ohio assembly plant next week, while its Kentucky truck plant in Louisville will only work two of the three shifts. Both factories will resume full production the week of March 29.

The U.S. automaker said the latest action was part of an earlier forecast that the shortage could reach 2021 profits of $ 1 billion to $ 2.5 billion.

On Thursday, Ford announced that it would assemble its flagship and highly profitable F-150 pickup truck and Edge SUVs in North America without certain parts, and then keep them “for a number of weeks” until they can. be completed and shipped, affecting “thousands” of vehicles. He also said he would halt production at factories in Louisville, Kentucky and Cologne, Germany.