Tag Archives: Stellantis

Automakers Suspend Operations, Change Equipment Due to Chip Shortage

Ford is temporarily suspending production at its Kansas City assembly plant to deal with the shortage.

Automakers continue to search for ways to deal with the semiconductor chip shortage impacting the industry on a global scale.

Most companies cut back production and shift available chip inventory to high-profit vehicles like pickup trucks. Seemingly no automaker is immune to the problem, including pricey luxury and sports car makers. Mercedes-Benz, Porsche and others all recently announced moves to deal with the shortage.

This week is not different with Daimler, Stellantis and Subaru reporting today they are taking new measures to account for current run of chip shortages, both in the U.S. and in other facilities around the world.

New announcements

Ford plans to extend the shutdowns at plants that build its F-150, Ford Transit, Ford Explorer and Lincoln Aviator, Ford Edge/Lincoln Nautilus and Ford Mustang. The Kansas City Assembly Plant that builds its top-selling F-150 and Transit commercial van suspend operations for the weeks of May 3 and 10. It’s currently closed down.

GM is slowing production of its van at its Wentzville plant to deal with the chip shortage.

The Flat Rock, Michigan plant, which builds the Mustang, and Chicago plant that builds the Explorer and Aviator will also be down the first two weeks of next month. They’ve been down since the week of April 12, according to Automotive News.

The company plans to continue the reduced production of its Super Duty and medium-duty trucks at the Ohio Assembly Plant near Cleveland.

General Motors plans to move its Wentzville (Missouri) Assembly plant from three shifts to just two on a temporary basis starting the week of April 26. It’s cutting van production at the site. Production of its midsize pickups, the Chevy Colorado and GMC Canyon, are unaffected. The company just restarted operations at the facility last week after a two-week shutdown.

Other moves

In what may be the most novel approach to dealing with the issue thus far, Stellantis is using analog speedometers in some its Peugeot models instead of the digital ones they would normally come equipped with.

Mercedes C-Class line at Bremen 2021

Daimler is cutting hours for 18,500 workers at two plants in Germany as it waits for more chips.

The move affects only the Peugeot 308, Reuters reported, which are built in France. The brand sold about 98,000 of the 308 model last year. The 308 is being phased out this fall in favor of a new vehicle. The company may reduce the price as a result of the less advanced speedo.

Daimler plans to reduce hours for 18,500 employees and idle production at its Bremen and Rastatt plants in Germany. Bremen builds the C-Class as well as the GLC, GLC Coupe and the all-electric EQC. The Rastatt plant produces the A-Class hybrid as well as the A-Class sedan, B-Class and GLA compact SUV.

Japanese automaker Subaru Corp. revealed plans to temporarily suspend production at its plant in Lafayette, Indiana. The closure will be in place until the end of April, according to officials. It will affect about 15,000 vehicles for North America, officials noted. The company builds the Ascent, Outback, Legacy and Impreza at the site.

/**/

/**/

GM, Ford Among 3 Dozen Michigan-Based Companies Objecting to New Voter Restrictions

GM Chairman and CEO Mary Barra was one of dozens of Michigan-based business leaders who signed a statement about voting rights.

Dozens of Michigan-based companies, including industry giants General Motors and Ford Motor Co., issued a strongly worded statement Tuesday objecting to Republican-sponsored bills that would make it more difficult to vote in Michigan and other states.

This marked the latest in a series of actions by some of the largest U.S. corporations to push back on GOP efforts to limit voting measures, such as mail-in ballots and access to ballot drop boxes, in the wake of former President Donald Trump’s defeat last November.

“Government must support equitable access to the ballot to ensure that all eligible voters can exercise their rights,” declared the statement issued by three-dozen Michigan companies. “Government must avoid actions that reduce participation in elections — particularly among historically disenfranchised communities, persons with disabilities, older adults, racial minorities and low-income voters.”

45 states target voting rights

Ford CEO Jim Farley

Jim Farley, Ford CEO, says ensuring “equitable access to voting” is critical to the long-term success of a free society.

After losing the presidential election, Trump declared the vote had been “stolen,” a claim universally rejected by election officials and the courts. But it has riled up hardcore supporters — like those who staged an attack on the U.S. Capitol on Jan. 6, as well as Republican legislators who have introduced bills aimed at restricting voter access in 45 states.

A bill has already passed in Georgia containing numerous restrictions that even prohibit providing bottles of water to those waiting on line to vote. The new law’s language has been widely criticized as targeting the racial minorities who helped Democrats regain control of the U.S. Senate by voting in the state’s two Democratic senators.

Michigan is one of the states now moving forward with proposed legislation that would, among other things require a voter to attach a photocopy of a government ID when returning a mail-in ballot. It also would ban communities from issuing prepaid return ballot envelopes. The GOP-controlled Michigan Senate is preparing to hold hearings on the measure this month.

Business backlash

That has triggered a strong backlash among Michigan’s traditional GOP-leaning business community. Among the organizations that co-signed the statement Tuesday are the leaders of GM, Ford and Stellantis — the company formed this year by the merger of Fiat Chrysler Automobiles and PSA Group. All four of the major Detroit-based sports teams signed the statement, as did various banks, utilities and other businesses.

Stellantis’ Mike Manley also lent his name to the letter calling for improved voting access.

Mary Barra, the GM CEO, issued an additional statement saying that, “we want to reiterate our belief that the right to vote is the essence of a democratic society and that the voice of every voter should be heard in elections that are conducted with integrity. Last year, we said we would leverage our voice to drive inclusion. Therefore, we are calling on Michigan lawmakers and state legislatures across the nation to ensure that any changes to voting laws result in protecting and enhancing the most precious element of democracy — the right for all eligible voters to have their voices included in a fair, free, and equitable manner.”

The 2020 election saw record voter turnout in much of the country, especially among blacks and other minorities that traditionally have turned out in lower numbers than whites. Michigan saw 5.5 million people go to the polls in November, a record in terms of raw numbers, as well as the highest percentage of the voting-age electorate in 60 years.

Senate leader under fire

The Senate measure in Michigan is being overseen by Majority Leader Mike Shirkey, a Republican who has himself come under fire for comments made on several occasions since Trump was defeated — the then-president losing to Joe Biden after winning in Michigan in 2016.

Donald Trump

President Donald Trump repeatedly claimed the 2020 election was stolen from him.

In February, a recording surfaced revealing that Shirkey told a gathering of Republicans that the Jan. 6 attack was a “hoax,” and had been “staged.” Shirkey said Tuesday the proposed state ballot bill would ensure that every vote will be “handled and counted the same.” He contended that the measure is a “perfunctory step to equitable access.”

The statement issued by Michigan business leaders on Tuesday did not specify what, if any, actions they might take if the bill were approved. Major businesses have taken more direct action in response to the passage and signing of the Georgia law, however.

A nation polarized

Major state businesses, including Delta Airlines and Coca-Cola spoke out harshly. Some have indicated they will consider shifting resources out of the state. Major League Baseball moved the annual All-Star Game to Colorado. And some film and TV projects have been relocated, as well.

The debate about voting rights comes at a time when the nation is as polarized as ever. The majority of Republicans believe the 2020 election was “stolen,” according to numerous polls, even though many major GOP leaders have dismissed such claims.

President Joe Biden took office in January despite claims of voter fraud.

One of the more significant developments has been a shift by many major corporations, a number of which have pulled back on political donations, especially to GOP campaigns.

Protecting the “historically disenfranchised”

In comments to company employees last week, Ford CEO Jim Farley stressed that the company “believes that equitable access to voting rights for all people is the bedrock of a democratic society.”

Echoing widespread concerns that proposed voter restrictions are aimed at minorities, Farley added, “We’re also aware that the right to vote in a free and fair election has been hard won in our nation, particularly for groups that have been historically disenfranchised. That’s why we support initiatives that promote equitable access and do not disproportionately affect any segment of the population.”

/**/

/**/

Stellantis Enjoys Warm Welcome from European Investors

Stellantis Chairman John Elkann is meeting with the media tomorrow to talk about the company’s future.

Not every merger involving an automaker these days involves a blank-check company. The newly minted tie-up between Fiat Chrysler Automobiles N.V. and Peugeot S.A. was finalized over the weekend and the resulting company, Stellantis N.V., is enjoying a warm welcome.

At least on the stock market.

The new company’s stock trades on three exchanges and it finished the day on the Paris exchange up nearly 7%, closing at €13.14. It also jumped up 7.7% on the Milan exchange.

The New York Stock Exchange, the third exchange it’s traded on, was not open today due to the Martin Luther King Jr. holiday.

(Chrysler is no more as Stellantis comes to life.)

CEO Carlos Tavares has a lot on his corporate plate now that the merger is complete.

The $52 billion merger of near equals creates a massive enterprise with operations on six continents, employs about 400,000 people, sells – at least for the time being – 14 vehicle brands and sells 8.1 million vehicles annually, making it the fourth-largest automaker in the world behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance.

With all of those possibilities, it’s going to take a press conference Tuesday to start revealing what Stellantis will look like now that’s it’s a living, breathing entity. What brands will stay? How many workers will keep their jobs?

People are nervous because the CEO of the new enterprise, Carlos Tavares, has a history of being fearless when it comes to eliminating unprofitable operations and processes in the pursuit of corporate profit. One need only look at how what he did with former General Motors’ subsidiary Opel. A money-loser for a decade, he had it in the black in one year.

(FCA CEO Manley gets new assignment following Stellantis merger.)

“Stellantis faces a mixed outlook as U.S. stimulus plans may buoy Chrysler vs. a more uncertain outlook for Peugeot in Europe,” Michael Dean, BI automotive analyst told Bloomberg. “Former PSA CEO Carlos Tavares takes the helm and, similar to his handling of PSA’s takeover of Opel in 2017, we anticipate a new strategy in the first 100 days of his stewardship. All regions face a difficult 1H amid continued lockdowns.”

Quirky name aside, investors gave Stellantis a warm welcome when it began trading Monday.

The two companies have worked to allay fears of major cutbacks in France and Italy. While top managers have outlined plans to trim costs by $6 billion following the merger, they insist they will be able to do that without closing any plants. They have outlined 40% of those cost savings coming from purchasing, 40% from combining product development efforts, and 20% from marketing and other operations.

However, it’s unclear how Tavares plans to tackle other issues such as improving the company’s performance in China, the world’s largest automotive market, and bolstering its electrification efforts, especially in the aforementioned China as well as in the U.S. Just addressing those two issues are likely to require billions of dollars and euros. Some of plans for these things and more may get touched on Tuesday, Marco Santino, a partner at consulting firm Oliver Wyman, told Reuters.

(Fiat Chrysler and PSA not exactly a “merger of equals.”)

“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” he said.

/**/

/**/