A member of United Auto Worker leaves the Fiat Chrysler Automobiles Warren truck plant after the first shift on May 18, 2020 in Warren, Michigan.
Gregory Shamus | Getty Images
The global shortage of semiconductor chips is forcing Stellantis to temporarily close five U.S. plants starting next week, the company confirmed Friday afternoon.
The affected plants are found in Illinois, Michigan, Mexico and two in Ontario, Canada. They build a wide range of products for the company: from Ram 1500 vans and older Jeep models to minivans and Dodge and Chrysler cars. The facility, which was previously part of Fiat Chrysler, is expected to be closed from Monday to early or mid-April, according to the company.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain problems facing our industry,” the company said in an emailed statement to CNBC. A Stellantis spokeswoman declined to reveal how many production units are expected to be lost.
Semiconductors are key components used in the entertainment, power steering and braking of new vehicles, among other systems. Vendors moved semiconductors away from the auto industry, as several plants closed last year due to Covid.
Consulting firm AlixPartners estimates that the shortage of chips will reduce revenues for the global auto industry by $ 60.6 billion.
Scarcity affects all car manufacturers differently. Several manufacturers, including General Motors, Ford Motor and new Chinese company EV Nio, have also announced this week production cuts or plans to extend downtime at facilities that have already been hit by the shortage.
Vehicles affected by Stellantis production stops include the Chrysler 300 sedan and Pacifica and Voyager minivans, Dodge Charger and Challenger cars, Jeep Cherokee and Compass SUVs, and the Ram 1500 Classic pickup truck. A newer version of the Ram 1500 remains in production at another Michigan plant.
Stellantis is the merged carmaker of Fiat Chrysler and the PSA group based in France. In the United States, its major brands include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.