Ford extends shutdown, Stellantis confirms layoffs due to chip shortage

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Ford and Stellantis announced new production cuts this week amid the global semiconductor shortage, with popular models including the Ford F-150 and Jeep Grand Cherokee facing cutbacks. Stellantis plans to lay off workers temporarily at one facility as production will be curtailed.

According to Automotive News, Ford is extending the closure of some of its North American factories until May. The Blue Oval has been forced to cut or halt production of both the redesigned F-150 pickup and the popular Explorer due to the shortage of chips. The Mustang, Transit, Edge, Lincoln Nautilus and Aviator will also continue to suffer.

Stellantis plans to temporarily lay off workers at a Detroit Jeep plant in April and May due to a shortage of semiconductor chips. The company will cut two shifts at its Jefferson North plant in Detroit for three weeks starting April 26, then call them back and lay off a third shift from May 17 through the week of May 31, according to a schedule obtained by Bloomberg News. The factory on the east side of Detroit normally works six days a week in two shifts with three shifts running 20 hours a day.

“Stellantis continues to work closely with our suppliers to reduce the manufacturing impact caused by the various supply chain issues facing our industry,” company spokeswoman Jodi Tinson said in a statement. “Due to the unprecedented global shortage of microchips, Jefferson North will adjust its production schedule until the end of May.”

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Jefferson North employs approximately 4,800 hourly workers and makes the Jeep Grand Cherokee, last year’s best-selling Jeep model, and the Dodge Durango SUV. According to researcher AutoForecast Solutions, production will start in August with an updated version of the Grand Cherokee.

This article contains news from Bloomberg.