Steel Markets

GM, Toyota Ramp Up; Other Automakers Still Struggle with Chip Shortage
Written by Michael Cowden
June 18, 2021
Some automakers have ramped up production and shipments after securing enough microchips, but others continue to struggle with the global semiconductor shortage.
Stellantis (formerly Chrysler) will idle is assembly plants in Belvidere, Ill.; Windsor, Ontario; and Toluca, Mexico, for the rest of June “due to the unprecedented global microchip shortage,” a company spokeswoman said.
The downtime is not entirely the result of chip shortages. The Belvidere plant had been previously scheduled to be down the week of June 28, and the Windsor facility had been scheduled to be down the week of June 21.
The three plants were also down the weeks of June 7 and June 14.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” the spokeswoman said.
Nissan, too, is cranking up production again – but not at all plants.
The Japanese automaker will run a regular production schedule (five days a week, eight hours a day) in July at its plant in Smyrna, Tenn., a company spokeswoman said. The Smyrna plant also ran a regular schedule in June.
But Nissan’s assembly plant in Canton, Miss., will remain on a reduced schedule next month (four days per week, eight hours per day) just as it was this month. And the second line at the Canton plant, which makes the Altima passenger car, is scheduled to be down the weeks of July 12 and July 19, the spokeswoman said. That line was also down the weeks of June 7, 14 and 21.
That’s a contrast from some larger automakers.
General Motors continues to ramp up production and shipments thanks to an increased supply of microchips.
And Toyota is still operating all of North American facilities.
“We have been ramping back up and running at all plants,” a company spokeswoman confirmed. Still, the Japanese automaker is still “facing challenges in this evolving situation,” she added.
By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden
Read more from Michael CowdenLatest in Steel Markets

Hot-rolled coil buyers continue seeking certainty
Steel market participants contend that buyers will remain in “wait-and-see" mode until some market stability is restored.

Latin American steel advocates warn on cheap import flood
Subsidized Chinese steel imports and cheap steel products from Association of Southeast Asian Nations (ASEAN) entering Latin American (LATAM) are threatening the region's steel market.

CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.

Hot-rolled price hikes garner mixed reactions from the market
Several steel market sources say they were blindsided when mills increased spot prices for hot-rolled coils this week.

Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.