GM shuts down most of its North American plants due to chip shortages

GM shuts down most of its North American plants due to chip shortages

Truck and SUV production will be affected by technical stoppages.

Photo: Bill Pugliano / Getty Images

General Motors announced the temporary halt to production at six of its North American factories as a consequence of the global shortage of chips.

Four of GM’s plants in the United States will be affected during the technical stoppage: the Fort Wayne, Indiana plant; that of Wentzville, Missouri; Spring Hill, Tennessee; and Lansing, Michigan.

Other four factories in Mexico and Canada will also be idle for several weeks, while GM works to strengthen its chip supply.

It is the latest automaker to be hit by a computer chip shortage. This is the second time that the company has announced temporary closures of its factories due to the shortage of chips. In April the largest automaker in North America had to shut down for two weeks.

The production halt will affect the production line of GM’s most profitable cars, such as trucks and SUVs.

According to a company spokesperson, a large number of unfinished vehicles will be shipped to some of the plants, especially Fort Wayne in Indiana and the Silao plant in Mexico.

The production lines of the vehicles that will be affected include the Chevy Silverado, Cheyenne, Traverse, Equinox and Express models; GMC Acadia, Sierra, Savana, Terrain and Canyon; Buick Enclave; and Cadillac XT5 and XT6.

The company stressed that the shortage of chips It would cost you between $ 1.5 billion and $ 2 billion in earnings before taxes this year due to loss of production.

Two weeks ago the company reported that it would recall Chevy Bolt EV models because batteries have defects that increase the risk of fire and it will cost you close to more than $ 1.8 billion.

GM is not the only manufacturer affected

Most car manufacturers they have had to cut production and temporarily close their factories among them Toyota, Ford, Volkswagen and even Tesla, which develops a smaller number of vehicles that has had to rewrite the software of its cars to be compatible with alternative chips.

You may be interested in the following news:

Source link