Semiconductor Shortage Hits Stellantis Where It Hurts:

The global semiconductor shortage has dealt another blow to Stellantis, with the automaker announcing new production issues. Semiconductors are the backbone of today’s automotive industry, controlling electronic features like driver-assist technologies, hybrid-electric systems, and even infotainment connectivity. With that being said, the semiconductor shortage has now affected production for several Stellantis North America vehicles.

With vehicle lines like the Jeep® Cherokee already being idled by the shortage, the popular Ram 1500 Classic appears to be the most recent vehicle affected. To avoid too much of a setback, the plan is to continue to produce the trucks without all the required parts, but hold them for final assembly at both the Saltillo Truck Assembly Plant in Mexico and the Warren Truck Assembly Plant in Warren, Michigan. As the required chips become available, the vehicles will be completed and shipped to dealers. 

The Ram Truck brand recently announced that some option packages have been modified on its fifth-generation Ram 1500 and updated fourth-generation Ram 2500/3500 Heavy Duty models to eliminate blind-spot monitoring to help conserve chips usage.

Other automakers are feeling the effects as well. Ford Motor Company has cut shifts at its Kentucky Truck Plant and is also assembling F-150 models and holding them for final assembly as parts become available. General Motors (GM) has taken a different approach and removed the cylinder deactivation from 2021 Chevrolet Silverado and GMC Sierra pickups with the 5.3-liter EcoTec3 V8 backed by the 6-speed or 8-speed automatics. The move keeps the supply of trucks coming, and GM says they have retested the trucks for EPA certification, and they take a 1 MPG hit. 

Other Stellantis assembly plants have been affected as well, with Stellantis CEO Carlos Tavares saying shortages might not be fully resolved by the second half of 2021. It will be interesting to see the impacts on vehicle sales when we break down the first-quarter sales results in a few weeks.