Monday, February 6, 2023
News More Stellantis Factory Shutdowns As Global Auto Shortage Continues

More Stellantis Factory Shutdowns As Global Auto Shortage Continues

Production disruptions continue

  • Forecasts estimate more than 6.2 million cars won’t get built this year

  • North American cuts lower than last week, still top six digits


More auto plant temporary shutdowns are coming or have started thanks to the ongoing semiconductor shortage. The pace of the closures, though, is slowing, and new numbers show that the global production cuts are well under half of what they were before.

Stellantis is scheduling more downtime at North American plants, Automotive News reports. The shutdowns include the Detroit plant that is home to the Jeep Grand Cherokee and Dodge Durango, which will see layoffs from July 11 through August 1. An already scheduled maintenance downtime means production will not restart until August 9th.

Plants in Windsor, ON, Illinois, and Mexico are also set to be closed until the end of the month. Brampton Assembly is also closed the weeks of July 19 and 26, though that is a regular summer closure.

It brings the AutoForecast Solutions estimate of production cuts for this week to 115,000 vehicles. That’s down sharply from 295,000 vehicles the week before, reports Automotive News. The same report says that the highest numbers of new reductions were in North America, Japan, and South Korea.

AFS forecasts currently that 6.2 million vehicles will not be built this year because of the microchip shortages. 1.9 million of those units were expected to be built in North America. The estimate is also up 100,000 over last week’s projections.

So far just over 5 million of those vehicle production reductions have been officially announced, with the remainder part of the projections. The shortages could extend well into next year, impacting the availability of new models and prices of both new and used cars.

 

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