Supply Chain Update: September 22

9/22/2011

Manufacturers report shortage of carpeting and floor mats amid flooding in Pennsylvania

At least a half dozen auto assembly plants in North America have been forced to slow production as the result of a shortage in the supply of carpeting and floor mats. The shortage is due to flooding at a key supplier plant in Pennsylvania, and is currently known to affect multiple manufacturers.

Chrysler has confirmed that it canceled production shifts at three of its plants beginning September 12.  Models built at the affected plants include the Chrysler 200 and 300; the Dodge Avenger, Challenger and Charger; and the Jeep Liberty.

GM has also reworked scheduling at some of its assembly plants, including those that make Buick Enclave; Cadillac CTS; Chevrolet Equinox, Impala, Cruze, Traverse and Volt; and GMC Acadia and Terrain models.

GM has issued a dealer bulletin saying it will ship certain vehicles without floor mats to ensure timely delivery.  As floor mats become available, GM will install them in vehicles currently in production. Once supplies fully rebound, GM will send floor mats to dealers as appropriate for installation on any vehicles that were delivered without them. GM has advised dealers not to substitute any non-GM floor mats on affected vehicles, as such floor mats may cause issues with the accelerator and/or brake pedal function.

At this time we anticipate GM will send a letter to the affected drivers (akin to a recall notice) advising the driver to contact their local dealer to secure floor mats.

Currently, production continues at all GM assembly plants; however, orders are being shifted so as to build vehicles that match the available supply of carpet and mats.

Ford has not issued a list of affected models or assembly plants; however, the manufacturer has advised that some vehicles are being built without carpet/floor mats and held up for delivery.  When new parts arrive units will be reworked and shipped. It is uncertain at this time whether Ford plans to ship vehicles without floor mats.

Volkswagen has reported that any 2012 model year Passat orders with beige interior (Option codes BE and BL) may be delayed by two weeks as a result of the shortage.
 
All manufacturers affected by the shortage have indicated that they are working to resume normal production as soon as possible, but currently do not have a timetable for when carpeting and floor mat supplies will return to normal.  Wheels remains in constant communication with the manufacturers and will continue to keep clients informed as the situation unfolds and we obtain additional information.  Clients with any affected orders will receive notification from a member of your Wheels account team.