The chip shortage continues to hit the auto industry. General Motors, the parent company of brands such as Chevrolet, GMC, Cadillac, announced that it will temporarily stop production of eight of its North American factories due to the increasing problem of obtaining essential components.
Its line of trucks, utility vehicles and sports cars will mainly be affected by the chip shortage, according to .. In the United States, the production of four plants will be stopped. These are those located in Fort Wayne, Indiana; Wentzville, Missouri; Spring Hill, Tennessee; and the historic Lansing, Michigan production line.
In Mexico, the Silao and San Luis Potosí plants will also temporarily stop production. This will be replicated at CAMI in Canada. In this way, General Motors joins other manufacturers that have not been able to maintain their usual rate of production due to the shortage of chips.
“During downtime, we will repair and ship unfinished vehicles from many affected plants, including Fort Wayne and Silao, to dealerships to help meet strong customer demand for our products, “said a spokesperson as reported by The Verge.
General Motors wants to tackle chip shortage
Photo by Lenny Kuhne on Unsplash
The executive added that although the chip shortage situation remains complex, it is still fluid and they continue to trust their teams’ ability to find solutions that minimize the impact. In this sense, they will be oriented mainly to face the models of greatest demand.
This second temporary shutdown since the chip shortage began – production was paused for two weeks at some of its factories in mid-April – will affect the Chevy Silverado, Cheyenne, Traverse, Equinox and Express models; GMC Acadia, Sierra, Savana, Terrain and Canyon; Buick Enclave; and Cadillac XT5 and XT6.
Toyota announced last month that it would cut 40% of its global vehicle production in September. The world’s largest automaker said that of the 900,000 units it had planned to make, they will reduce the number to 540,000. Volkswagen, for its part, is also analyzing a new production cut due to the shortage of chips.
Against this complex backdrop, TSMC, the world’s largest semiconductor maker, announced in mid-July that it intends to build new foundry factories in the United States and Japan to cope with chip shortages. This to increase the delivery of microcontrol units used in cars.