General Motors hit by chip shortage, will cut production at four plants
General Motors says it plans to idle four assembly plants next week as it has become the latest US automaker to be badly affected by the global shortage of semiconductor chips.
The company announced on Wednesday it will halt production entirely during the week of Feb. 8 at its plants in Fairfax, Kansas; Ingersoll, Ontario; and San Luis Potosi, Mexico in addition to its Bupyeong 2 plant in South Korea which it will run at half capacity that week.
The company said it was seeking “to keep producing our most in-demand products — including full-size trucks and SUVs and Corvettes” — during the shortage.
“Despite our mitigation efforts, the semiconductor shortage will impact GM production in 2021,” spokesman David Barnas said in a statement.
“Semiconductor supply for the global auto industry remains very fluid,” Barnas added. “Our supply chain organization is working closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM.”
GM vehicles which will be affected by shortage of semiconductor chips are the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox and Trax, and GMC Terrain SUVs and the Buick Encore small crossover vehicle.
Several other automakers, including Volkswagen AG, Ford Motor Co., Subaru Corp., Toyota Motor Corp., Nissan Motor Co. and Stellantis NV have also had to halt or slow production at various plants due to a shortage of semiconductor chips used in electronics that control engines, transmissions, entertainment systems and other major components.
This comes after producers of semiconductors started making more chips for game consoles and other consumer electronics when many automakers closed factories to prevent the spread of the coronavirus last year.
When the automakers reopened their plants last summer, they were pleasantly surprised by strong demand for new trucks and sport-utility vehicles, however, chip makers have been unable to quickly restore production of the semiconductors.
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