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The General Motors headquarters in Detroit, Michigan. (Reuters)
The General Motors headquarters in Detroit, Michigan. (Reuters)

GM to halt production in eight factories in North America due to chip crisis

  • The semiconductor shortage has hit the manufacturing of General Motors's profitable products that are truck and sport utility vehicles (SUVs).

  • The production capacity of automakers such as Ford Motor Co and Toyota Motor Corp have also been impacted due to the ongoing chip crisis.

General Motors will decrease production at most of its North American factories due to the ongoing semiconductor shortage. The chip crisis has hit the manufacturing of the automaker's profitable products that are truck and sport utility vehicles (SUVs), said a Reuters report.

GM will pause its productions at its Fort Wayne plant in Indiana and Silao plant in Mexico next week.

Both of these factories produce pickup trucks for the automaker. The report added that General Motors will be cutting down production at eight of its North American assembly plants this month. With the intensifying semiconductor shortage, many automakers are cutting down their production capacity. 

(Also read | Volkswagen's biggest plant to have only one shift owing to global chip crisis)

The brand will also pause production at its Wentzville, Missouri plant for two weeks from September 6. These plants are responsible for building midsize trucks and full-size vans for the company. GM has planned to halt production at the CAMI Assembly in Canada and San Luis Potosi Assembly in Mexico for two additional weeks. The company builds its Equinox SUV at both plants.

The largest automaker of the US will also stop work for two additional weeks at its Lansing Delta Township plant and Spring Hill Tennessee plant that builds the Chevrolet Traverse and the Buick Enclave and GMC Acadia, Cadillac XT5 and Cadillac XT6 respectively. 

(Also read | Global chip shortage may last until 2023, says prominent German chip company)

The report mentioned that the brand's Ramos plant in Mexico will pause factory works for two weeks impacting Blazer and Equinox production. However, it also added that production of the Equinox has been down since August 16. GM informed during production downtime it will repair and ship unfinished vehicles from many impacted plants, including Fort Wayne and Silao.

The production capacity of automakers such as Ford Motor Co and Toyota Motor Corp have also been impacted due to the ongoing chip crisis. The former's sale went down by 33 percent in August while the latter slashed its global production by 40 percent in September.

(With inputs from Reuters)

 

  • First Published Date : 04 Sep 2021, 09:41 AM IST