GM Extends Cuts In Automobile Manufacturing And Begins Parking Incomplete Automobiles Due To World Chip Shortages By Reuters
© Reuters. The GM logo in Warren Michigan
By Ben Klayman
DETROIT (Reuters) – General Motors Co (NYSE 🙂 announced Tuesday that production cuts at three global plants were extended and built until at least mid-March, but incomplete vehicles were left at two other factories due to the global shortage of semiconductor chips.
GM did not reveal how much volume it would lose in its recent move or what supplier and vehicle parts were affected by the chip shortage, but said the focus remains on maintaining production in plants where the vehicles are at the highest Profit to be built – full-size pickups and SUVs. GM said it intends to make up for as much production downtime as possible.
“Semiconductor supply remains an issue facing the entire industry. GM plans to use every available semiconductor to build and ship our most popular and sought-after products,” said GM spokesman David Barnas.
GM said it added downtime at its Fairfax, Kansas, plants; Ingersoll, Ontario; and San Luis Petosi, Mexico, by mid-March, when it will reassess the situation, he said. In addition, GM will build for subsequent final assembly vehicles at plants in Wentzville, Missouri, and Ramos Arizpe, Mexico, but leave them incomplete.
The GM vehicles affected by the closed plants are the Chevrolet Malibu sedan, the Cadillac XT4 SUV, the Chevy Equinox and the GMC Terrain SUV, while the vehicles built for later final assembly are the Chevy Colorado and GMC Canyon pickups and the Chevy Blazer SUV include.
Earlier this week, GM shut down the three factories where downtime was being extended and announced it would cut production in half at a plant in South Korea.
The chip shortage has affected many automakers, including Toyota Motor (NYSE 🙂 Corp, Volkswagen AG (OTC :), Stellantis, Ford Motor (NYSE 🙂 Co, Renault (PA :), Subaru (OTC 🙂 Corp., Nissan (OTC 🙂 Motor Co, Honda Motor Co and Mazda Motor (OTC 🙂 Corp.
Asian chipmakers are rushing to ramp up production, but warn that it will take many months to fill the supply gap. German chip maker Infineon (OTC 🙂 warned that things will get worse in the near future. The chip shortage is expected to reduce global vehicle production by more than 670,000 vehicles in the first quarter and into the third quarter, forecast company IHS Markit said. AutoForecast Solutions estimates that total lost production this year could reach 1 million vehicles.
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