GM Halts Production at 4 US Factories Because of Chip Shortage

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The auto industry is feeling the strain of the global chip shortage . It’s forcing automakers to halt production as a result of the lack of essential computer chips. General Motors, parent company of Chevrolet, GMC, Cadillac, and Buick said it was temporarily halting production at six of its North American factories as a result of the global chip shortage. It’s the latest major automaker to be affected by the tight supply of essential computer chips.

Fort Wayne, Indiana; Wentzville, Missouri; Spring Hill, Tennessee; and Lansing, Michigan are among the affected plants. Four additional plants in Mexico and Canada will also shut down for many weeks as GM attempts to replenish its chip supply. The manufacturing halt will hit General Motors’ most profitable cars, such as pickup trucks and SUVs.

“The situation remains complex and very fluid” stated a spokesperson, “During the downtime we will ship unfinished vehicles from many of our impacted plants. This includes trucks such as the Chevy Silverado, Cheyenne; vans like the Traverse; SUVs like the Equinox and Express and even some smaller cars such as the Buick Enclave and Cadillac XT5. Again we’re adapting our production schedule to meet strong customer demand for our products.”

Chevrolet Silverado, Cheyenne, Traverse, Equinox, and Express; GMC Acadia, Sierra, Savana, Terrain, and Canyon; Buick Enclave; and Cadillac XT5 and XT6 are among the models that have been impacted by this chip shortage.

In reaction to the chip scarcity, General Motors has forced to announce temporary production shutdowns for the second time in as many months. This was the second time in April that the largest automaker in North America had shut down several factories for two weeks. But General Motors isn’t the only company suffering from a worldwide semiconductor chip scarcity. As a result, nearly every automaker, including Ford and Toyota, has had to reduce production and temporarily shut down operations.

In spite of Tesla’s low production volume compared to its competition, the company has replaced all of its chips with a custom component manufactured by Samsung or another vendor, claimed Elon Musk, the firm’s CEO. The situation with chip shortages is still fairly severe, as the industry has found it hard to keep up with demand from companies like Tesla, which has caused further issues as the technology industry has found it difficult to meet the needs of the car maker.

GM management refused to estimate how much production they expect to lose due to the chip shortage during a recent earnings call. However, CEO Mary Barra stated that she and her team are working to ensure that smaller SUVs and electric vehicles receive chips as soon as possible. However, at the moment, the majority of those chips have been diverted to full-size pickup trucks, large SUVs, and new electric vehicles, leaving everything else out. The company sounded quite firm in its refusal to provide additional information about the severity of the situation or the circumstances surrounding their decision, other than to state that the shortage would cost the company between $1.5 billion and $2 billion in earnings before taxes this year due to lost production.

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