The global semiconductor shortage doesn't appear to be getting better anytime soon, driving more companies to temporarily suspend production as they struggle to contend with the profound impact on global supply lines. Stellantis
Amsterdam-headquartered Stellantis announced last week that it would temporarily stop production at five North American factories as it contends with the global shortage of semiconductors. Two plants in Canada, two in the United States, and one in Mexico closed on Monday and will likely remain closed through mid-April at the latest, according to Stellantis.
Stellantis, which was formed by the merger Fiat-Chrysler and Groupe PSA, inherited a massive portfolio of brands, including Jeep and Dodge, which were affected by the firm's decision to suspend production. The plants targeted for temporary production halts manufacture Jeep, Dodge, and Chrysler vehicles, primarily older-model Jeep and Dodge models. Newer model dodge trucks remain in production at other factories, however.
Furloughed workers at the plants will receive both local government assistance and supplemental assistance from Stellantis for the roughly four-week production halt. Some union officials representing the workers have taken aim at the practices of Stellantis and its predecessors, blaming short-sighted practices for the breakdown in supply lines.
"Chrysler used to build many of its own parts. This just-in-time delivery is costing us untold dollars for short-term savings. The pandemic has taught us it's even more important that it should be made in Canada now," a representative for Windsor, Ontario-based union workers said.
The weaknesses identified by critics were rendered even more apparent as of late, with the Suez Canal's recent blockage by a beached cargo vessel causing further supply line disruptions that may have been avoided. Even with the recent clearage of the canal, the considerable backlog of vessels will likely keep vital supplies of semiconductors in Egypt for some time, likely contributing to further production halts if not addressed.