Photo: Ram
The holiday season is almost upon us, and it’s pretty clear already that the chip shortage wouldn’t go away anytime soon. Despite analysts’ expectations that the global inventory would witness a substantial recovery in the fall of 2022, it’s becoming obvious this isn’t going to happen, so carmakers across the world continue to struggle with the same painful, constrained supply.
The latest to confirm the semiconductor problems is Stellantis, as the company has once again adjusted its production as a result of the chip shortage.
The Warren Truck Assembly Plant, which is responsible for building the Ram 1500 and the Jeep Wagoneer, and Grand Wagoneer, just dropped its third shift, with the change reportedly taking place as soon as the next week.
The decision isn’t necessarily surprising. Stellantis is one of the companies that have been struggling to minimize the disruptions caused by the chip shortage, with similar production adjustments announced at plants across Europe only a few weeks ago.
The good news for people who want to see the glass half-full is that no job cuts would take place, so Stellantis is just suspending the third shift for the time being.
The Warren Truck Assembly Plant in the north of Detroit has been operating on three shifts since January, but the constrained semiconductor supply is now hitting the models built at the plant as well.
And once again, anticipating the end of the chip shortage continues to be mission impossible, as not even the supply recovery forecasts seem to be accurate anymore. Most carmakers, however, seem to expect the constrained inventory to remain a problem in 2023, with General Motors’ CEO herself suggesting recently that the crisis could continue even beyond next year.
Tech giant Intel has previously predicted that the chip market wouldn’t return to pre-2020 levels earlier than 2024, at least in certain industries, including the automotive sector.
The Warren Truck Assembly Plant, which is responsible for building the Ram 1500 and the Jeep Wagoneer, and Grand Wagoneer, just dropped its third shift, with the change reportedly taking place as soon as the next week.
The decision isn’t necessarily surprising. Stellantis is one of the companies that have been struggling to minimize the disruptions caused by the chip shortage, with similar production adjustments announced at plants across Europe only a few weeks ago.
The good news for people who want to see the glass half-full is that no job cuts would take place, so Stellantis is just suspending the third shift for the time being.
The Warren Truck Assembly Plant in the north of Detroit has been operating on three shifts since January, but the constrained semiconductor supply is now hitting the models built at the plant as well.
And once again, anticipating the end of the chip shortage continues to be mission impossible, as not even the supply recovery forecasts seem to be accurate anymore. Most carmakers, however, seem to expect the constrained inventory to remain a problem in 2023, with General Motors’ CEO herself suggesting recently that the crisis could continue even beyond next year.
Tech giant Intel has previously predicted that the chip market wouldn’t return to pre-2020 levels earlier than 2024, at least in certain industries, including the automotive sector.
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