The global semiconductor chip shortage has had serious impacts on the automotive industry here in the United States and abroad. All three of Detroit’s automakers have had to close or limit shifts at their production facilities, resulting in a significant decline in the number of new vehicles being built. Stellantis for example has stated that their production capacity was reduced by 11 percent during the first quarter of 2021, which is equivalent to 190,000 vehicles. CEO Carlos Tavares has gone on record to say that this issue will only be worse for the company in Q2, due to continued issues with sourcing semiconductor chips. That said, there is some good news to share. According to The Detroit News, Jefferson North Assembly Plant, home of the Jeep Grand Cherokee and Dodge Durango, is running at full capacity again.
Jefferson North Assembly Plant
Stellatnis’ Jefferson North Assembly Plant hasn’t been cranking out the Jeep Grand Cherokee or the Dodge Durango at normal rates since late April. Not exactly the sort of situation a company would want for some of their most profitable offerings. That said, Stellantis was quick to note that the supply of the necessary semiconductor chips continues to be rocky, and that future shutdowns are indeed possible. In fact, industry analysts believe that these integral components will remain hard to come by through the end of 2021 at the earliest.
Other Stellantis Plants Fire Back Up
The Jefferson North Assembly Plant isn’t the only facility operated by Stellantis to see an uptick in production this week however. The company’s plant in Warren, which builds the Ram 1500 Classic and the upcoming Jeep Wagoneer, is back online at full capacity as well. Warren has been facing production delays since March. The Belvidere Assembly Plant in Illinois and the Windsor minivan plant are also going to see a single shift return to work this week, before closing down again next week due to supply shortages.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” spokeswoman Jodi Tinson said in a company statement.
The global semiconductor chip shortage has helped facilitate a rise in average car prices across the board in recent months. With supplies of new vehicles at their lowest point in a decade, dealers are bringing in some serious cash on what little new vehicle inventory they have. Combine this with the rise of used car prices we’ve seen over the pandemic, and it’s a hard time to be in the market for a vehicle. Automakers have asked the federal government for help in stemming the chip shortage, but nothing has come of that request as of yet. Should you be shopping for a Jeep Grand Cherokee or a Dodge Durnago however, hopefully things can start to turn around soon.