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There's an impending shortage of new trucks in America's heartland

URBANDALE, Iowa — Jerry Bill is worried the novel coronavirus could hurt business at the Des Moines auto dealership he runs, but not because of a shortage of buyers for the big Ram pickups on his lot. "Our biggest issue will be if we don't get more inventory," said Bill, general sales manager of Stew Hansen Chrysler Dodge Jeep Ram, which sells around 2,700 new vehicles a year in Urbandale, a suburb of Iowa's capital Des Moines. After a drop in sales in April when consumers stayed home, Bill expects pickup truck sales to end May similar to where they were a year earlier. And if demand remains strong, Bill said he will run out of popular models in June. Fiat Chrysler began slowly restarting Ram truck assembly lines on Monday after a two-month shutdown. The U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession of 2007-2009 because of lockdown measures aimed at slowing the spread of the coronavirus. Economists warn the second quarter will be much worse. Still, far from the lockdowns of states like New York, Michigan or Ohio, dealerships like Stew Hansen have provided FCA and Detroit rivals General Motors and Ford a rare bright spot: strong sales of pickup trucks in America's heartland. Overall U.S. sales of cars and light trucks crashed to the weakest pace in 50 years last month. But sales of big Detroit brand pickups, particularly in southern and western states less affected by the outbreak, significantly outperformed the market, industry executives and analysts said. Pickup trucks are one of the most profitable automotive segments in the world. They account for a huge portion of the Detroit automakers' profits and formed a huge lure for Peugeot, which expects to merge with FCA by early 2021. The pressure is now on to boost pickup truck production and send vehicles to dealers in parts of the country with dwindling supplies. That is particularly true for GM, which is running short of certain truck models after losing 40 days of production to a strike last fall. "If you don't have what someone wants, they can choose to go to another brand," said Cox Automotive analyst Michelle Krebs. 'Easiest swap ever' Detroit automakers in March rolled out large discounts — such as interest-free loans for seven years — to keep vehicles rolling off dealer lots.

GM's Fairfax, Kansas, plant closed through mid-August due to chip shortage

General Motors is further extending downtime at its Fairfax Assembly facility in Kansas City, Kan., due to ongoing microchip supply issues, the company confirmed late Monday. The plant will now remain idled through at least Aug. 16, Automotive News reports. The facility, which produces the Cadillac XT4 and (for now, anyway) the Chevrolet Malibu, was already slated to be on standby until after the upcoming July 4th holiday weekend, but GM was forced to extend the outage again – this time by more than an another month – due to the continued lack of electronic component supply.  While microchip production has begun to catch up to existing production demand, it could take months (perhaps even more than a year) for customers to see relief from the shortage.  Related video:

GM extends production at Detroit factory until early 2020

General Motors Co said on Friday it had extended the production at its Detroit Hamtramck plant until January 2020, against an earlier plan to discontinue production in June this year. The No.1 U.S. automaker is revamping its operations, which include plant closures and thousands of job cuts, as it looks to boost profitability in the wake of declining U.S. auto sales. The Hamtramck plant will continue to produce the Chevrolet Impala and Cadillac CT6 sedans until early next year, the company said. "We are balancing production timing while continuing the availability of Cadillac advanced technology features currently included in the CT6-V — the Blackwing Twin-Turbo V-8 (engine) and Super Cruise (driver assistance system)," GM said. The plant has already discontinued production of the Buick LaCrosse sedan and Chevrolet Volt electric hybrid car. Detroit-based union United Auto Workers' President Gary Jones said GM's decision to continue production at the plant was a relief for the workers as well as their families. "We commend GM for today's decision and we reiterate the importance of a collective bargaining process in times like these," Jones said. Reporting by Ankit Ajmera. Related Video: