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Ford extends shutdown, Stellantis confirms layoffs due to chip shortage

Ford and Stellantis this week announced new production cuts due to the global semiconductor shortage, with popular models including the Ford F-150 and Jeep Grand Cherokee facing cuts. Stellantis plans to temporarily lay off workers at one facility as production is curtailed.  According to Automotive News, Ford is extending shutdowns at some of its North American facilities into May. The Blue Oval has been forced to reduce or idle production of both its redesigned F-150 pickup and the popular Explorer due to the chip shortage. The Mustang, Transit, Edge, Lincoln Nautilus and Aviator will also continue to be affected. Stellantis is planning to temporarily lay off workers at a Jeep plant in Detroit during April and May due to a shortage of semiconductor chips. The company will cut two work crews at its Jefferson North plant in Detroit for three weeks starting April 26, then call them back and lay off a third crew from May 17 through the week of May 31, according to a schedule obtained by Bloomberg News. The plant on Detroit’s east side normally operates two shifts with three work crews six days a week to keep it running 20 hours a day. “Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” company spokeswoman Jodi Tinson said in a statement. “Due to the unprecedented global microchip shortage, Jefferson North will adjust its production schedule through the end of May.” Jefferson North employs about 4,800 hourly workers and makes the Jeep Grand Cherokee, the top-selling Jeep model last year, and the Dodge Durango SUV. A redesigned version of the Grand Cherokee is scheduled to start production in August, according to researcher AutoForecast Solutions. This article contains reporting from Bloomberg. Plants/Manufacturing Ford Jeep Lincoln Technology chip shortage

Has the auto industry hit peak hybrid?

Hybrids are known for their great fuel economy and low emissions, but it looks like given current market conditions, only about three percent of new car consumers are willing to pay the premium for them. A new study from IHS/Polk finds that the hybrid market share among overall US auto sales are falling, despite more models with the technology on sale than ever before.
The study examined new car registrations in March from 2009 through 2014. In that time, the auto industry grew from 24 to 47 hybrid models available to consumers, but market share for the powertrain remained almost stagnant in that time. As of 2009, hybrids held 2.4 percent of the market; it fell slightly to 2.3 percent in 2010 and grew to 3.3 percent in 2013. However, 2014 showed a drop back to 3 percent. Overall hybrid sales have been growing since 2010, but they just aren't keeping up with the total auto market.
According to IHS/Polk, this isn't what you would expect to see. Usually, each new model in the market brings along with it a boost in sales. The growth in hybrid models 2009 to 2014 should have shown a larger increase in share for the segment.

How Ford switched gears for the all-new F-150

Editor's Note: This story is authored by Julia Halewicz, a senior editor with AOL's Custom Solutions Group. She holds a Masters in Journalism from NYU and has spent her career as an editor of various newspapers, magazines and digital outlets. Last year on the Friday before Labor Day, the 2014 Ford F-150 pickup truck came off the Dearborn assembly line for the last time. After the last seam was welded, the F-150 that had been so beloved by American consumers would begin the transition from traditional steel manufacturing to an aluminum body, and the second phase of Ford's 2007 blueprint for sustainability would begin. Jobs would be created, and Ford would deliver a stronger product to its consumers. It was a moment Ford would call the biggest in the company's 111-year history. Breaking The Mold For some, the change was almost unfathomable. How could a truck be made with aluminum, and why change what clearly was working very well for the company? "We have a saying at Ford that leaders lead," said Doug Scott, the company's truck group marketing manager. "This was an ideal product to make with aluminum-alloy, because lightweighting made so much sense for a truck, because the extent to which you could take weight out of a truck, you could add more value to the customer in terms of more towing, more payload, more durability, more efficiency – so again all this required us to be out in front further out in front that we normally would be to make sure that we would deliver on all those expectations." Ford began the planning process about five years before the first aluminum F-150 would come to market. The company had a lot of questions. What was customer acceptance of aluminum, could they build the truck, and could the truck be repaired out in the field? Finally, Ford needed to determine if there were enough materials available to support the demand for the F-Series. Aluminum vehicles aren't unusual, but had never been built on the scale of the F-150 – approximately one every minute. Ford created two prototypes to determine if the product would meet and exceed consumer expectations. Any change to the vehicle had to be justified in performance, safety and economy. An aluminum truck needed to be safer, lighter, have increased payload, haul more, and have improved fuel efficiency. After driving the prototypes, Ford knew it was ready to move forward. Once the aluminum truck was ready to build, the next challenge was quickly transforming the plant.