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Ram forced to build and hold 1500 Classic trucks due to chip shortage

DETROIT — The impact of the global semiconductor shortage on the auto industry spread on Saturday, as Stellantis warned its highly profitable pickup trucks were hit, while Ford said it would cut more U.S. production. Stellantis, the world's fourth largest automaker, said it will build and hold for final assembly its Ram 1500 Classic trucks at its Warren, Michigan, and Saltillo, Mexico, assembly plants. When chips become available, the vehicles will be completed and shipped to dealers. The action will last "a number of weeks," a Stellantis spokeswoman said, declining to reveal how many trucks would be affected. The chip shortage, which has hit automakers globally, stems from a confluence of factors. Carmakers shut North American plants for two months during the COVID-19 pandemic last year and canceled chip orders. Meanwhile, demand for chips surged from the consumer electronics industry as people worked from home and played video games. Now carmakers must compete for chips. Carmakers have repeatedly said they will prioritize chips for their most profitable vehicles, but the impact on the Ram, as well as previous reports by Ford and General Motors of lost or impacted production of their full-size trucks, shows the shortage is hitting companies where it hurts. Stellantis Chief Executive Carlos Tavares said earlier this month the problems might not be fully resolved by the second half of 2021, as some auto rivals have flagged, describing supplies as the "big unknown" for revenues in 2021. Ford said Saturday it will idle its Ohio assembly plant next week, while its Kentucky Truck Plant in Louisville will only work two of three shifts. Both plants will return to full production the week of March 29. The U.S. automaker said the latest action is part of a prior forecast it made that the shortage could hit 2021 profits by $1 billion to $2.5 billion. On Thursday, Ford said it would assemble its flagship, highly profitable F-150 pickup truck as well as Edge SUVs in North America without certain parts and then hold them "for a number of weeks" until they can be completed and shipped, affecting "thousands" of vehicles. It also said it would idle production at plants in Louisville, Kentucky, and Cologne, Germany. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Ram 2500 Off-Road Pack targets Ford's FX4, Chevy's Z71

If you were a Ford or Chevrolet customer looking for a heavy duty pickup with some improved off-road chops, the process is relatively simple: tick the box for the FX4 or Z71 packages and be on your merry way. These packages are simple affairs, adding upgraded shocks, underbody protection, and unique wheels alongside a slew of cosmetic improvements. Now, Ram is getting in on the game. Making its debut at the Chicago Auto Show, a new 4x4 Off-Road Package will be offered on the 2500 model regardless of engine, bed length, or trim level. The only restriction is cab size – you'll need to order the Crew or Mega Cab in order to get the new option pack. Despite being a new package, Ram's formula is more or less the same as that used by the FX4 and Z71. Mechanical changes are limited to new Bilstein monotube shocks (Ford turns to Rancho, while the shock absorbers on Chevy's Z71 are unbranded) and a standard limited-slip differential (also offered on the Big Horn and Lone Star trims). Firestone supplies the LT tires, which look to strike a balance between off-road ability and on-road comfort, while there's the normal array of underbody protection. And like Ford and Chevy, Ram has fit a prominent decal on the rear fender. Pricing isn't finalized yet, but Ram specifically calls the 4x4 Off-Road Pack "a value-priced option." That'd make a lot of sense, considering how Ford and Chevy have priced similar equipment packs. Neither the FX4 nor the Z71 pack are high-priced options, with the former ringing up at $295 on the F-250 and the latter maxing out at $620, depending on which Silverado HD you chose. Look for the Ram 2500 4x4 Off-Road Pack to hit dealers during the third quarter of 2016. Related Video: Ram Truck Brand Announces New Ram 2500 Heavy Duty 4x4 Off-road Package New Ram 2500 4x4 Off-road Package designed for customers who need essential off-road upgrades combined with 3/4 -ton pushing, pulling and hauling capabilities Part of "America's Off-road Truck Leader" lineup Features stability control upgrades, all-terrain tires and rugged exterior appearance New package includes limited-slip differential, underbody protection and Bilstein shocks Available "RamBox Holster" rack accessory for RamBox-equipped trucks February 11, 2016 , Auburn Hills, Mich. - Ram Truck capitalizes on a core piece of the 3/4 -ton segment with new Ram 2500 4x4 Off-road Package, which includes a list of must-have upgrades for the occasional off-roader.

Huge, pricey trucks haul jobs and profits for the Detroit Three

DECATUR, Texas — Mickey McMaster is on his 12th pickup truck. The 61-year old farm equipment dealer in Decatur, Texas, two weeks ago treated himself to a 2019 GMC Denali for around $69,000 — a reward for long hours at work. "For me this is the Cadillac of trucks, it's a real luxury vehicle," McMaster said. "I've worked my way up to afford a truck like this and it shows that I've earned it." McMaster is the kind of customer General Motors Co is banking on as it plans to add 1,000 jobs at a plant in Flint, Michigan that will build a new generation of its largest pickups. Demand from Texas and other heartland states for big pick-ups is providing a lifeline to many workers the No. 1 U.S. automaker is laying off at plants elsewhere. The Detroit Three automakers and thousands of their U.S. workers are counting on customers like McMaster to keep buying bigger and more luxurious pickup trucks even if overall U.S. vehicle demand weakens this year, as most analysts predict. At Flint, GM will build a new generation of its heavy-duty Chevrolet Silverado and GMC Sierras, including luxury models that are some of the most profitable vehicles on the planet. GM, Ford Motor Co and Fiat Chrysler Automobiles NV's Ram division own the segment and are each doubling down with new or redesigned models launching this year. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM on Tuesday celebrated the launch of a new generation of heavy-duty GMC and Chevrolet pickups at the assembly plant in Flint, Michigan, that is now building all such trucks for the company. At the same time that GM is laying off thousands of U.S. workers and planning to shutter five North American factories, Flint is hiring. The plant runs on three daily shifts, six days a week. As the new model's assembly system ramps up, the plant's capacity will increase by more than 25 percent, plant manager Mike Perez told Reuters. The Flint plant plans to add 1,000 workers, more than half of the 1,500 factory workers who have asked to transfer from plants GM has targeted for shutdown as part of CEO Mary Barra's restructuring plan. "We're bringing in 50 to 100 people every week," said Perez. Workers last week were still finishing the job of retooling the Flint factory to build the new heavy-duty trucks as part of a $1.5 billion investment project.