Stellantis pickups hit, Ford cuts production due to global chip shortage

Carmakers have repeatedly said they will prioritize chips for their most profitable vehicles, but the impact on their full-size trucks, shows the shor
...
Ford F-150
Ford F-150

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 for final assembly its Ram 1500 Classic trucks at its Warren, Michigan, and Saltillo, Mexico, assembly plants. When chips become available, the vehicles will be completed and shipped to dealers.

Also check these Vehicles

Find more Cars
Ford Mustang Mach E (HT Auto photo)
UPCOMING
₹ 70 Lakhs
Alert Me When Launched
Kia Ev6 (HT Auto photo)
BatteryCapacity Icon77.4 kWh Range Icon708 km
₹ 59.95 - 64.95 Lakhs
Compare
View Offers
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Mercedes-benz Eqa (HT Auto photo)
UPCOMING
BatteryCapacity Icon66.5 kWh Range Icon426 Km
₹ 60 Lakhs
Alert Me When Launched
Bmw Ix1 (HT Auto photo)
BatteryCapacity Icon66.4 KWh Range Icon440 Km
₹ 66.90 Lakhs
Compare
Volvo C40 Recharge (HT Auto photo)
BatteryCapacity Icon 78 kWh Range Icon 530 Km
₹ 61.25 Lakhs
Compare

The action will last "a number of weeks," a Stellantis spokeswoman said, declining to reveal how many trucks would be affected.

Also Read : Ford F-150 pickup trucks to be built without computers. Blame it to chip crisis

The chip shortage, which has hit automakers globally, stems from a confluence of factors. Carmakers shut North American plants for two months during the COVID-19 pandemic last year and canceled chip orders. Meanwhile, demand for chips surged from the consumer electronics industry as people worked from home and played video games. Now carmakers must compete for chips.

Carmakers have repeatedly said they will prioritize chips for their most profitable vehicles, but the impact on the Ram, as well as previous reports by Ford and General Motors Co of lost or impacted production of their full-size trucks, shows the shortage is hitting companies where it hurts.

Stellantis Chief Executive Carlos Tavares said earlier this month the problems might not be fully resolved by the second half of 2021, as some auto rivals have flagged, describing supplies as the "big unknown" for revenues in 2021.

Also Read : Microchip crisis: Nissan forced to temporarily cancel production of several cars)

Ford said Saturday it will idle its Ohio assembly plant next week, while its Kentucky Truck Plant in Louisville will only work two of three shifts. Both plants will return to full production the week of March 29.

The U.S. automaker said the latest action is part of a prior forecast it made that the shortage could hit 2021 profits by $1 bln to $2.5 bln.

On Thursday, Ford said it would assemble its flagship, highly profitable F-150 pickup truck as well as Edge SUVs in North America without certain parts and then hold them "for a number of weeks" until they can be completed and shipped, affecting "thousands" of vehicles. It also said it would idle production at plants in Louisville, Kentucky, and Cologne, Germany.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 21 Mar 2021, 09:20 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.