“They have tried very hard to allocate the chips they get to high-demand and high-profit margin vehicles,” said Michelle Krebs, senior analyst at AutoTrader. “But clearly that’s being the challenged right now.”
The company has also temporarily shut down one of three shifts at the Kentucky Truck plant where the full-size Expedition and Navigator SUVs are built, as well as the Super Duty pickups.
The good news for Stellantis is Ram pickup sales may not get dinged, or at least not right away. Krebs said Stellantis has an excess supply of the Ram 1500 Classic — about 143 days’ worth. That compares to an average of a 59-day supply for full-size pickups across the industry.
The global chip shortage
The average car has between 50 to 150 chips in it. Some chips can be used in many different models, which has allowed the automakers to keep up production of trucks and SUVs until now. But there are other chips that are specific to each kind of vehicle.
“The supply chain is pretty fragile,” she said. “We have a conservative sales forecast due to the tight inventories.”