Semiconductor Shortage Hits Ram, Jeep Production

July 13, 2021
Despite idling plants, parent company Stellantis expects to surpass its forecasted annual adjusted operating margin.

July 13, 2021—Michigan production of the Ram 1500 pickup truck and the Jeep Grand Cherokee SUV will be down next week as a result of the global microchip shortage, The Detroit News reported

Stellantis, the parent company of Ram and Jeep, has worked to limit the chip shortage's impact and expects to surpass its forecasted annual adjusted operating margin of 5.5 percent to 7.5 percent for the first half of the year, despite idling plants.

Detroit's Jefferson North Assembly Plant had crews cut in the spring, but the plant continued to operate. Sterling Heights Assembly Plant will also will be down for previously scheduled general maintenance.

"Stellantis continues to work closely with our suppliers," company spokeswoman Jodi Tinson said in a statement, "to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry."

About the Author

Ratchet+Wrench Staff Reporters

The Ratchet+Wrench staff reporters have a combined two-plus decades of journalism and mechanical repair experience.

Sponsored Recommendations

Increase Premium Oil Changes by 12%*

Valvoline SPARK is a proven way to increase your sales and profit. The program is an effective approach for presenting oil change packages that can deliver double digit gain for...

Strategies to Increase Profits and Traffic at Your Repair Shop

Rev up your auto repair business with a guide to industry best practices that delves into the strategies and techniques that top-performing auto repair shops employ to not only...

Download: Lessons in ADAS

As ADAS systems become increasingly popular, understanding proper maintenance is crucial. This eBook explains the importance of staying current on proper ADAS calibration processes...

Craft a strategic marketing plan

Develop strategies and communicate them to your staff to keep you on track