Microchip shortage hits Jeep Gladiator production
A global shortage of microchips is hitting more truck production, with the Jeep Gladiator its latest victim.
Stellantis NV's Toledo South Assembly Plant in Ohio will halt production of the midsize pickup next week. It's the first time scarcity of the semiconductors used in consumer electronics, including vehicles' assisted driving functions, infotainment and heated seats, has stopped production of the Gladiator.
"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 statement.
Production of Jeep's flagship Wrangler SUV, which is built at Toledo North Assembly Plant, will continue.
Stellantis on Thursday had said Brampton Assembly Plant in Ontario, home of the Dodge Challenger and Charger muscle cars and the Chrysler 300 sedan, also would be down next week. The automaker updated those plans late Thursday, saying Brampton will resume production next week.
Windsor Assembly Plant in Ontario will resume production of Chrysler minivans next week. It also will run the week of Aug. 9, a change to an earlier schedule saying production would be halted that week. The plant also will idle the weeks of Aug. 16 and 23 for the previously scheduled summer shutdown.
Production of the Jeep Cherokee crossover in Belvidere, Illinois, will resume next week with one shift after the automaker indefinitely laid off the second shift. Jeep Compass assembly will resume next week in Toluca, Mexico, as well.
Stellantis CEO Carlos Tavares last week told the Automotive Press Association the chip shortage is expected to extend easily into 2022. The demand created from the COVID-19 pandemic that has led to the tight supply is expected to cost the industry $110 billion this year, according to consulting firm AlixPartners LLP.
General Motors Co. on Wednesday said it would restart production of its full-size truck plants next week after they idled for a week because of the short stock, but certain SUVs from Buick, Cadillac and Chevrolet still were affected.
Despite the disruptions, Ford Motor Co. said Wednesday it made a $561 million profit during the second quarter and increased its financial outlook for 2021.