Steel Markets
GM, Toyota Ramp Up; Other Automakers Still Struggle with Chip Shortage
Written by Michael Cowden
June 18, 2021
Some automakers have ramped up production and shipments after securing enough microchips, but others continue to struggle with the global semiconductor shortage.
Stellantis (formerly Chrysler) will idle is assembly plants in Belvidere, Ill.; Windsor, Ontario; and Toluca, Mexico, for the rest of June “due to the unprecedented global microchip shortage,” a company spokeswoman said.
The downtime is not entirely the result of chip shortages. The Belvidere plant had been previously scheduled to be down the week of June 28, and the Windsor facility had been scheduled to be down the week of June 21.
The three plants were also down the weeks of June 7 and June 14.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” the spokeswoman said.
Nissan, too, is cranking up production again – but not at all plants.
The Japanese automaker will run a regular production schedule (five days a week, eight hours a day) in July at its plant in Smyrna, Tenn., a company spokeswoman said. The Smyrna plant also ran a regular schedule in June.
But Nissan’s assembly plant in Canton, Miss., will remain on a reduced schedule next month (four days per week, eight hours per day) just as it was this month. And the second line at the Canton plant, which makes the Altima passenger car, is scheduled to be down the weeks of July 12 and July 19, the spokeswoman said. That line was also down the weeks of June 7, 14 and 21.
That’s a contrast from some larger automakers.
General Motors continues to ramp up production and shipments thanks to an increased supply of microchips.
And Toyota is still operating all of North American facilities.
“We have been ramping back up and running at all plants,” a company spokeswoman confirmed. Still, the Japanese automaker is still “facing challenges in this evolving situation,” she added.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Markets
Steady architecture billings signal improving conditions
The November ABI decreased month over month but was still the third-highest reading of the past two years.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
Latin America’s steel industry grapples with declining demand, rising imports
With climbing imports and falling consumption, the Latin American steel industry has had a challenging 2024, according to an Alacero report.
CRU: Trump tariffs could stimulate steel demand
Now that the dust has settled from the US election, as have the immediate reactions in the equity, bond, and commodity markets, this is a prime opportunity to look at how a second Trump presidency might affect the US steel market.