Stellantis prolongs shutdown time of two factories due to chip shortage

Published: May 8, 2021 13:27

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[due to chip shortage Stellantis extends shutdown time of two factories] according to foreign media reports, due to global semiconductor shortage, Stellantis extended the shutdown time of Jeep Free Light and Chrysler minivan plants to mid-May. Stellantis said in a statement on May 6th that its Free Light plant in Belvidere, Illinois would stop production until mid-May, while its Windsor plant in Ontario would stop production until the second week of May.

According to foreign media reports, due to the global shortage of semiconductors, Stellantis extended the shutdown time of Jeep Free Light and Chrysler minivan plants to mid-May.

Stellantis said in a statement on May 6th that its Free Light plant in Belvidere, Illinois would stop production until mid-May, while its Windsor plant in Ontario would stop production until the second week of May. The plant produces Chrysler Pacifica and Voyager. Meanwhile, production of Jeep guides in Toruca, Mexico has resumed.

"Stellantis continues to communicate closely with our suppliers to mitigate the impact of various supply chain problems in the industry on production," Jodi Tinson, a spokesman for Stellantis, said in a statement.

In addition, Stellantis's Ram 1500 Classic in Warren, Mich., is still out of production, and the plant is preparing to start production of Jeep Wagoneer and Grand Wagoneer SUV in June. Stellantis's plant in Brampton, Ontario, Canada, which produces Chrysler 300 and Dodge Charger and Challenger, resumed production on April 19th.

Richard Palmer, chief financial officer of Stellantis, said at the first-quarter earnings meeting this week that the chip shortage was expected to ease in the second half of 2021, but it would be naive to think that the problem would disappear completely. "the chip shortage may continue into 2022." Stellantis's North American revenue rose 9 per cent in the first quarter from a year earlier, but delivery fell 4.2 per cent year-on-year.

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