{"id":159341,"date":"2021-02-08T09:37:12","date_gmt":"2021-02-08T14:37:12","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=159341"},"modified":"2021-02-08T09:37:12","modified_gmt":"2021-02-08T14:37:12","slug":"stellantis-windsor-plant-latest-hit-by-computer-chip-shortage","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2021\/02\/stellantis-windsor-plant-latest-hit-by-computer-chip-shortage\/","title":{"rendered":"Stellantis’ Windsor Plant Latest Hit by Computer Chip Shortage"},"content":{"rendered":"
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Stellantis is shutting down its Windsor plant due to the semiconductor shortage.<\/figcaption><\/figure>\n

Stellantis is temporarily shutting down its Windsor Assembly Plant\u00a0due to a global shortage of semiconductors for the next three weeks as the shortage of semiconductors continued to force carmaker to reduce their production plan despite healthy demand.<\/p>\n

“We are working closely with our global supply chain network to manage the manufacturing impact caused by the global microchip shortage and will continue to make production adjustments as necessary,” according to a statement from Stellantis, which temporarily shut an assembly plant in Brampton,\u00a0Ontario<\/a><\/strong><\/span> due to the semiconductor shortage.<\/p>\n

The company\u2019s already been forced to halt production at its Brampton, Ontario facility due to the lack of chips. Overall, the problem has been plaguing the industry for some time now with nearly all automakers in North America either having to shut down or slow production lines due to the issue.<\/p>\n

Unifor weighs in on shortage<\/h2>\n
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The Windsor plant produces the Chrysler Pacifica minivan.<\/figcaption><\/figure>\n

\u201cUsually, manufacturing is the big dog, but with the same chips being used by Apple and other software companies in computers, iPads and phones, the reality is it changes the game,\u201d noted post on the Facebook page of Unifor Local 444.<\/p>\n

\u201cIt just goes to show you how brittle our parts supply chain is and how volatile,\u201d the post added, highlighting the fact the semiconductor chips used across the auto industry are made in East Asia.<\/p>\n

\u201cThese kinds of things should open our governments\u2019 eyes to look at a \u2018Build Canadian\u2019 mandate on a lot of things. Instead of spending a dime, we\u2019re going (overseas) to Taiwan or China to spend a nickel,\u201d the post added.<\/p>\n

Ford faces cut in 2021 profits<\/h2>\n

Meanwhile, Ford Motor Co., which is cutting production shifts at critical truck plants in Dearborn, Michigan, and Kansas City, Missouri, estimated the company\u2019s production of new vehicles it has planned for the first quarter and second quarter could drop between 10% to 20% due to the shortage of semiconductors.<\/p>\n

John Lawler, Ford\u2019s chief financial officer, noted the production shortfall could reduce the company\u2019s earnings between $1 billion and $2.5 billion<\/a><\/strong><\/span>. Ford\u2019s current guidance for investors is for earnings between $8 billion and $9 billion in 2021 after losing $1.3 billion in 2020, including $2.8 billion in the fourth quarter.<\/p>\n

\u201cThe situation is very fluid,\u201d said Lawler during a conference call with analysts. He added the company has been working with the supply base for the past couple of weeks to figure out a path forward. The company expects to have more and better information by the end of the first quarter.<\/p>\n

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Michigan Senator Gary Peters joined forces with Michigan’s senior Senator Debbie Stabenow in encouraging the Biden administration to help.<\/figcaption><\/figure>\n

The temporary reductions at the Kansas City and Dearborn plants, where the company builds the popular F-150 pickup truck, come as the inventory of the vehicles on dealer lots, at 53 days, is lower than it has been in years, according to Ford executives.<\/p>\n

General Motors Co. also has been forced to shut down and scale back production<\/a><\/strong><\/span> in the face of the shortages, which have impacted manufacturers around the world.<\/p>\n

Senators ask Biden for help<\/h2>\n

Michigan\u2019s U.S. Senators Gary Peters and Debbie Stabenow are urging the Biden administration to work with Congress in addressing the global semiconductor shortage facing auto manufacturing.\u00a0In addition a letter, the Senators have been urging a number of Biden administration officials directly to take action.<\/p>\n

In their letter, the Senators highlighted how the shortage threatens to disrupt the post-pandemic economic recovery and may impact production in communities across the country \u2013 including Michigan.<\/p>\n

\u201cWe write to express our concerns about the impact that the global shortage of automotive-grade semiconductor chips will have on auto manufacturing in the United States. This shortage threatens our post-pandemic economic recovery, the consequences of which stand to be especially acute in dominant auto manufacturing states like ours,\u201d the senators wrote.<\/p>\n

\u201cWe believe that the incoming administration can continue to play a helpful role in alleviating the worst impacts of the shortage on American workers, and we urge you to work with us to address the global semiconductor shortage.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Stellantis is temporarily shutting down its Windsor Assembly Plant\u00a0due to a global shortage of semiconductors for the next three weeks as the shortage of semiconductors continued to force carmaker to reduce their production plan despite healthy demand.\u00a0Find out more at TheDetroitBureau.com<\/p>\n","protected":false},"author":20009,"featured_media":159345,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,13,12],"tags":[],"make":[51,106],"post-state":[],"category_old":[118,286,150,151,123,131,299,191,132,129,284,125,124,297,139,212,291,288,305,141],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/159341"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=159341"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/159341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/159345"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=159341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=159341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=159341"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=159341"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=159341"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=159341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}