GM suspends most truck production due to chip shortage
General Motors will suspend production of most of its high-margin full-size pickups in the U.S. and Mexico next week due to a persistent global shortage of semiconductor chips,media reported.
The company confirmed on July 21 that production will be reduced at plants in Michigan, Indiana and Mexico, which make the Chevrolet Silverado and GMC Sierra pickups.
The cuts include the temporary closure of the company’s Fort Wayne, Indiana, and Silao, Mexico, assembly plants next week. Its assembly plant in Flint, Michigan, which makes heavy-duty trucks, will also switch from three to one shift. GM said it expects the plants to resume full production the week of Aug. 2.
“Global semiconductor shortages remain complex and uncertain, but GM’s global procurement and supply chain, engineering and manufacturing teams will continue to find creative solutions and work with the supply base,” the company said in a statement. Minimize the impact of chip shortages on our most in-demand vehicles, including full-size trucks and SUVs.”
Previously, with an aggressive supply chain strategy, GM avoided a shutdown of large pickup trucks this year due to parts shortages. In addition, the company has produced some cars without chips, and the vehicles will wait for final assembly when chip supplies resume. In addition, GM has also cut some vehicle functions, such as wireless charging pads for mobile phones. Chip supply shortages are expected to cost the global auto industry $110 billion in lost revenue in 2021, according to consultancy AlixPartners.
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