Tag: Peugeot

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.


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Chrysler is No More as Stellantis Comes to Life

Is this the last logo that will use the Chrysler name?

Chrysler is dead.

Perhaps a bit dramatic, but nevertheless, the merger between Fiat Chrysler Automobiles N.V. and Peugeot S.A. became effective today, resulting in Stellantis N.V. Shares of the newly formed Stellantis begin trading on exchanges in France, Italy and the U.S. starting Monday. All will use the ticker symbol STLA.

The deal has been going through extensive regulatory approvals, twin shareholder votes and the necessary dottings of i’s and crossings of t’s for more than a year.

As of today, that means that for the first time since June 6, 1925, when it was founded by Walter P. Chrysler, the Chrysler name will no longer exist as a corporate entity.

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

Stellantis is alive! The company’s stock begins trading on three exchanges Monday.

In many ways, the Chrysler name was a survivor. The company’s been through a variety of mergers, potential mergers and bankruptcies. It escaped the “merger of equals,” DaimlerChrysler from the late 1990s.

It was essentially spared its life when the late Sergio Marchionne swooped in and offered to keep it going if the U.S. government would help it through bankruptcy in 2009. The final deal got done with Chrysler Group LLC becoming part of FCA US LLC to follow

the naming convention of Fiat Chrysler Automobiles N.V. on Dec. 16, 2014.

Chrysler Corp. fought its way through several near misses when it came to mergers as potential deals with Japanese automaker Mitsubishi, China’s GAC and most recently an effort to merge with Peugeot’s French rival, Renault S.A., a deal that was reportedly scuttled after demands by the French government, which holds an ownership stake in Renault, were too much for then FCA CEO Mike Manley to accept.

(Fiat, PSA set to get EU go-ahead to complete Stellantis merger.)

Then there was the effort by the aforementioned Marchionne to find a partner for FCA, seemingly almost any partner would do. He approached General Motors and was promptly rebuffed. He reportedly got the same treatment from Volkswagen. There was even a rumored dalliance with EV behemoth Tesla, which would have bolstered FCA’s basically non-existent electric vehicle program.

The arrival of Stellantis means for the first time in 95 years the Chrysler name won’t be on a corporate marquee.

It also survived a previous bankruptcy in the late 1970s, paying off the loans early with its charismatic CEO Lee Iacocca, who came over from Ford, helping to lead the company’s charge back to prosperity. Chrysler did enjoy one major merger success when it acquired American Motors in 1987, including – and especially – the Jeep brand.

In fact, no one seems certain what the future holds for the Chrysler name period. Early in the process, officials said that all brands would be retained, but time and economics often change the equation and currently, the Chrysler brand offers just two products: the Chrysler Pacifica minivan and 300 sedan. Neither are in segments that are seeing sales gains.

To be fair, there’s been some speculation about the survival of the Fiat name in the same vein. Fiat’s been around even longer, founded in Turin, Italy in 1899. In the U.S., it’s only offering the 500X in 2021.

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

The Chrysler name isn’t the only vestige of FCA seemingly taking a step back as its CEO Mike Manley is no longer in charge, that duty going to PSA’s Carlos Tavares nor will he be on the board of directors as John Elkann, FCA’s chairman, will take that spot as the chairman of the new Stellantis. Manley, 56, is now Head of the Americas.


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