While being shut down due to "lack of cores", Detroit automakers are also recruiting

Reporter | Li Yimeng

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The newly formed Stellantis Group is hiring a large number of blue-collar workers in Detroit, the major U.S. automaker, while the manufacturing plants of several auto brands, including Jeep, Ram and Ford Motor Company, are shutting down due to a global supply shortage of semiconductor chips.

Stellantis Group posted the above job vacancy information via social media on Wednesday (May 19). The group will recruit people over the age of 18, starting at $15.78 an hour.

Jodi Tinson, a spokeswoman for Stellantis Group, said the open recruitment would fill the group's job openings in the Detroit area, which includes Ram pickups and Jeep SUV production lines at sterling heights and Warren plants.

The GM website posted job postings at the same time that the company plans to recruit some experienced procurement and manufacturing talent in Michigan. Ford said it was also accepting job applications.

Stellantis Group and Ford Motor also announced on Wednesday that more plants will be shut down due to bottlenecks in global semiconductor chip supply. Such chips are widely used in automobile manufacturing, including but not limited to autonomous driving functions, seat heating, infotainment systems, etc.

Both companies expect the impact of the chip shortage on the second quarter of this year to peak.

For the Stellantis Group, the Group's Jeep plant in Belvidere, Illinois, will close from May 31. The plant, which produces the Cherokee model, is currently implementing a partial shift system. Last week the company said it would cut shifts again at the plant, a decision that would affect nearly 1,700 jobs.

In Ontario, Canada, the Windsor plant, which manufactures Chrysler minivans, will also suspend production from next week and operate part of the shift system from the following week. The Toluca plant in Mexico, where the Jeep Compass model is built, will also shut down during the two-week period.

Production of the Ram 1500 Classic will also be suspended at the Warren plant at the end of May, and the Jefferson North plant in Detroit will reduce shifts.

"The Stellantis Group will continue to work closely with our suppliers to mitigate the manufacturing impact of the various supply chain issues facing our industry." Kaileen Connelly, a spokeswoman for the Stellantis Group, said in a statement.

Ford also updated the plant shutdown information. The company's chicago facility will close from May 31 and reduce shifts from June 7. The plant currently produces models such as the Ford Explorer, Police Interceptor Utility and Lincoln Aviator. Production will also be suspended for the two weeks aforementioned at the Flat Rock plant in Michigan, which is responsible for producing Ford's Mustang models.

In addition, the company's pickup production lines in Dearborn and Kansas City, as well as factories in Louisville, Ohio Avon Lake, Hermosillo, Mexico, oakville, Canada, and other places will also be affected to varying degrees, with downtime reaching as long as June 28.

"Our team will continue to leverage existing semiconductor chip configurations and will continue to look for proprietary solutions to deliver as many high-quality vehicles as possible to dealers and customers." Ford Motor Company spokeswoman Kelli Felker said in a statement.

According to information published on Ford's official website, the shutdown will affect more than 32,000 salaried and hourly workers.

Ford confirmed earlier this week that it would reduce three shifts at the Dearborn plant to one shift starting next week. In addition to other recently confirmed production adjustments, the automaker said the Kansas City, Missouri-based plant will also be closed for two weeks starting this week.

Ford has said the shortage of key components could cost it 1.1 million new car production and $2.5 billion in the automaker's full-year adjusted profits.

The crisis has affected the entire automotive industry to varying degrees. Consultancy AlixPartners revised its forecasts for the impact of the shortage last week. The problem could cost global automakers $110 billion in revenue this year, the company said, up from the $61 billion it estimated in January. The company now expects to lose 3.9 million new vehicle capacity worldwide, or 4.5 percent of global automakers' production plans this year.

General Motors did not release new plans to cut production Wednesday, but the company said in late April that the Fairfax plant in Kansas would remain closed until at least the week of July 5. The plant is home to the production of Cadillac XT4 and Chevrolet Malibu models. The plant has been in a state of shutdown since early February.