- Stellantis (STLA) shares dropped nearly 10% to $10.19 on Thursday after the company announced a production pause at its Warren Truck Assembly Plant starting April 14, due to an engine shortage.
- The shutdown, expected to last four weeks until early May, prioritizes Ram 1500 production at Sterling Heights over Jeep Wagoneer and Grand Wagoneer SUVs at Warren, a move Stellantis says is unrelated to tariff-driven cuts announced the same day.
- UAW Local 140 president Eric Graham confirmed the timeline but the stock slide reflects investor worries about Stellantis’ supply chain woes and broader operational stability amid multiple pressures.
Stellantis N.V. (STLA) shares tumbled nearly 10% to $10.19 in Thursday’s trading session, rattled by the company’s decision to halt production at its Warren Truck Assembly Plant for several weeks starting April 14, a move detailed in a report by The Detroit News. The automaker, facing an internal engine shortage, is redirecting all available resources to keep the Ram 1500 rolling off the line at its Sterling Heights Assembly Plant, according to spokeswoman Jodi Tinson’s statement. This pause, expected to lift in early May, stands apart from other tariff-driven factory cuts Stellantis announced the same day, signaling deeper operational challenges for the company behind Jeep and Ram brands.
The Warren plant, which churns out Jeep Wagoneer and Grand Wagoneer SUVs, will idle for roughly four weeks, as confirmed by Eric Graham, president of United Auto Workers Local 140 representing its workers, per The Detroit News. This production stoppage highlights supply chain strains that have plagued the auto industry, with Stellantis opting to prioritize its high-demand Ram 1500 pickup over its luxury SUVs. The decision underscores a strategic shift to protect a key profit driver, but the market’s sharp reaction – docking shares nearly 10% – suggests investor unease about the company’s ability to juggle multiple pressures, from parts shortages to tariff impacts.
Stellantis’ focus on Sterling Heights underscores the Ram 1500’s strong sales traction in the competitive U.S. truck market, but the Warren shutdown raises broader concerns about the company’s overall resilience. While this disruption may stem from internal challenges rather than tariff-related fallout, its timing – coupled with other production cuts – has amplified investor unease. With production set to resume in early May, Stellantis is working to stabilize output, yet the stock’s 22% year-to-date decline suggests that investors perceive deeper risks beyond the company’s near-term adjustments.
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