More Microchip-Related Downtime for Stellantis

“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply-chain issues facing our industry,” she said.

Production had initially paused at the Belvidere, Ill., assembly plant during the week of March 7. The latest downtime at the facility, which makes the Jeep Cherokee SUV, will now extend through the week of March 14.

From mid-2020 onwards as the economy has recovered from the pandemic, there’s been a surge in demand for automotive semiconductors, driven by the introduction of electric vehicles and technologies such as driver assistance systems. In fact, chips account for more than 20% of the input costs for new premium vehicles. Additional chip inventory would be welcomed relief for the auto industry, which has been among the hardest hit by the semiconductor shortfall that is expected to persist into the second half of 2022. 

Though no other North American automaker reported any current or planned downtime to SMU this week, General Motors, Ford, Toyota and Honda have all experienced production disruptions this year due to the microchip shortage.

By David Schollaert, David@SteelMarketUpdate.com