Stellantis Sochaux: semiconductor shortage shut down plant for four days

The 3,500 employees of the Stellantis plant in Sochaux learned this morning that production of the Peugeot 308, 3008 and 5008 was stopped until May 25 due to a problem with the supply of semiconductors. Consequence: delivery times have lengthened at dealerships.

Since Friday afternoon, no car will leave the production lines of the Stellantis factory in Sochaux until Tuesday, May 25 inclusive. That is to say a shortfall of 6,400 cars. Already in March last April, the production of the 308s had to be stopped for at least a month for lack of having been sufficiently delivered in semiconductors. In the world, there is a real shortage of semiconductors.

The Covid health crisis has reshuffled the production cards of these small parts essential for the operation of telephones, game consoles, computers … IT is booming with the development of teleworking and periods of confinement. Automakers are struggling to cope with this increased competition.

In Sochaux, a solution had been found by installing analogue meters for the 308. But that was not enough. The two production systems are affected by this shortage: the one that manufactures the 308s and the one that assembles the Peugeot 3008, 5008. As last March:

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For the FO and CGT unions at the Sochaux site, this situation is becoming worrying and difficult to live with. The employees learned by text this Saturday morning that they were not due to come to work on Tuesday. This measure also concerns administrative jobs. Only logistics, quality service and stamping employees can come to work.

Jérôme Boussard (CGT) denounces “a just-in-time flow strategy” which affects employees. “We learn of these stops at the last moment, we sail on sight” laments the trade unionist CGT. Eric Peultier (FO) also criticizes these decisions taken at the last moment. “We had proposed to the management to make the Ascension Bridge in order to be able to build up buffer stocks but we still worked and now we learn this Saturday that we will not come on Tuesday! Socially, it’s not terrible . “

Risk of partial unemployment?

To this uncertainty of the next day could also be added financial losses. Once the working time modulation days have been exhausted, employees should be placed on partial unemployment. For the moment with the support measures put in place by the government, employees are losing around 16% of their net salary. But if the state stops this support linked to the health crisis, the loss of income would be even greater. This could already be the case this Wednesday, May 26 if work does not resume. Employees will be notified by management no later than Tuesday at 5.30 p.m. for the two production systems.

Car orders: lead times are getting longer

This upheaval in automobile production is already having consequences for dealerships. Depending on the model, the waiting times between order and delivery can seriously increase. For example, for the 3008 and 5008 ordered right now, customers will be able to pick it up until September is at least a month longer than usual. The lead time is a bit shorter for electric and hybrid vehicles. For commercial vehicles like the Expert, deliveries are postponed until November!

With the reopening of “non-essential” stores since May 19, many customers are coming to car dealerships. Demand is strong but supply is overdue.

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