Steel Markets
More Microchip-Related Downtime for Stellantis
Written by David Schollaert
March 13, 2022
The semiconductor shortage that has hamstrung North American automakers for the better part of two years is still causing production headaches. Stellantis is the latest carmaker to report delays due to the lack of microchips.
The Auburn Hills, Mich.-based automaker has extended the downtime at its Belvidere Assembly Plant for a second straight week, a company spokeswoman told Steel Market Update.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply-chain issues facing our industry,” she said.
Production had initially paused at the Belvidere, Ill., assembly plant during the week of March 7. The latest downtime at the facility, which makes the Jeep Cherokee SUV, will now extend through the week of March 14.
From mid-2020 onwards as the economy has recovered from the pandemic, there’s been a surge in demand for automotive semiconductors, driven by the introduction of electric vehicles and technologies such as driver assistance systems. In fact, chips account for more than 20% of the input costs for new premium vehicles. Additional chip inventory would be welcomed relief for the auto industry, which has been among the hardest hit by the semiconductor shortfall that is expected to persist into the second half of 2022.
Though no other North American automaker reported any current or planned downtime to SMU this week, General Motors, Ford, Toyota and Honda have all experienced production disruptions this year due to the microchip shortage.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest 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.