Parts shortage shutters plant
Temporary layoffs began Monday
Due to a global semiconductor chip shortage exacerbated by the recent blockage of the Suez Canal, Stellantis will temporarily shut down five North American plants including the Warren Truck Assembly Plant on Mound Road. Plants in Windsor and Brampton, Ontario; Belvidere, Illinois; and Toulica, Mexico are also affected.
The Warren Truck Assembly Plant builds the Ram 1500 Classic truck.
A statement issued by Stellantis said: Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry. Due to the unprecedented global microchip shortage, production at the Warren Truck Assembly Plant will be down beginning next week through mid April.
With uncertainty surrounding various factors, Stellantis is unsure when production at the plants will commence. The shutdown began Monday.
“We have not heard how long the shutdown will last, but Stellantis is looking at mid-April for now,” said Macomb County Director of Planning and Economic Development, Vicky Rowinski. “A month ago, Ford was
feeling the crunch so we have looked at this really closely because it impacts our suppliers.”
Employees at the plant reached by MediaNews Group Saturday reported receiving three-week layoff notices.
A long-term stoppage could cause automotive parts suppliers to temporarily halt production as well.
The semiconductor chips are used for several vehicle functions including brakes, power steering, navigation, heated seats, and parking cameras.
Rowinski says a kind of perfect storm of factors led to this severe shortage of semiconductors. The COVID pandemic was already affecting supply chains. Then the February freeze in Texas slowed production on plastic products needed to make automotive parts and the blockage of the Suez Canal by a massive freighter that grounded recently
has added to the issue.
The automotive industry has been dealing with semiconductor shortages for several months and Rowinski said she has been bracing for possible factory shutdowns and seeking long-term solutions to the problem.
“We had heard that Intel is looking to increase its footprint here in the United States so we are thinking of what we can do to attract companies that make the semiconductor technology to Macomb County,” said Rowinski. “From an economic development perspective, we always look at ‘where do our products come from?’ Having a local presence would mean not seeing this kind of stoppage. Semiconductors are crucial to an automobile.”
Those in the market for a new vehicle can expect to have a longer than usual wait as it is anticipated the semiconductor shortage will increase demand.