Semi-Conductor Industry Updates

Written By: Merchants Fleet

This page was last updated on April 9, 2021 at 2:00 p.m.

Today’s market is experiencing a variety of factors that have added up to create a “perfect storm” of vehicle acquisitions challenges. Most notably has been the semi-conductor shortage, which is dominating supply chain headlines. Several OEMs have announced production cutbacks this year, causing sudden shifts in buildout dates and closures of order banks. Unfortunately, the semi-conductor shortage is not a problem with a short-term fix, so we expect these supply impacts to be ongoing. We encourage fleets to be proactive, flexible, and responsive in managing their vehicle acquisitions strategy, and we are here to assist you in those efforts.

To better help you track these ongoing shifts in supply and build out dates, we will be updating this page regularly with the latest semi-conductor and supply chain updates. You can also track order and build out date changes here.

Latest Updates

April 9, 2021

Below are updated plant closures. Fleets should continue to expect production delays, with average additional lead times being 3-4 weeks on most models.

  • Ford: In an effort to protect its most popular and profitable lines, the following production lines will go in and out of production until mid-year.
    • Dearborn, MI (F150)
    • Kansas City, MO (F150 & Transit)
    • Louisville, KY (Escape & Corsair)
    • Oakville Assembly in Ontario, Canada (Edge & Nautilus)
    • Chicago, IL (Explorer & Aviator)
    • Ohio (Super-Duty)
  • GM: The following plants have been scheduled for production downtime. Their intent is to make up as much lost production at these plants as possible once back up and running.  GM’s Global Purchasing and Supply Chain organization continues to work closely with supply base to find solutions for suppliers’ semiconductor requirements and to mitigate any additional impacts.
    • Spring Hill, TN (GMC Acadia, XT5 & XT6)
    • Ramos, Mexico (Blazer)
    • Wentzville (Express, Savana, Colorado, Canyon)
    • Lansing Delta Township (Enclave, Traverse)
    • Lansing Grand Driver (Camaro, CT4, CT5)
    • Cami (Ingersoll Canada to Mexico) (Equinox)
  • STELLANTIS: The following plants have been scheduled for production downtime.
    • Windsor, Ontario (Pacifica, Voyager)
    • Belvidere, IL (Cherokee)
    • Warren, MI (Ram 1500)
    • Saltillo, Mexico (Ram 1500)

April 5, 2021

  • Stock vehicle ordering continues to be challenging, with vehicle stocks 21% lower than they were at this time last year.
  • Light truck inventory in particular continues to be scarce, and due to recent plant closure announcements this will continue through Q2/Q3. We have received reports of dealers having only a small fraction of their typical inventory. The light truck inventory that is available is moving very quickly, spending only an average of 41 days on the lot compared to 88 days last year.
  • Given this climate, there can be no hesitation for companies that are ordering stock vehicles. We recommend flexibility and fast turnaround on approvals in order to secure vehicles.

April 1, 2021

  • There was another fire at a microchip facility in Japan the week of March 26th. This is having an impact on part production, which already was constrained.
  • OEMs continue to reduce shifts and cut overtime at plants where less popular models are made so they can concentrate on producing trucks & vans. They are also extending holidays in lieu of full shutdowns.
  • In some situations vehicles are only being built with one keyfob instead of full sets in order to conserve resources.

OEM Updates

Please visit our manufacturer’s information page for the latest build-out dates.

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