GM to Halt Production at Several North American Plants Due to Chip Shortage
09 April 2021 - 1:20AM
Dow Jones News
By Mike Colias and Allison Prang
General Motors Co. will halt production at several North
American factories and extend shutdowns at some others because of a
shortage of semiconductor chips that has snarled global automotive
output.
The auto maker said Thursday that three plants previously
unaffected by the chip shortage will be idled or have output
reduced for one or two weeks, including a factory in Tennessee and
another in Michigan that make popular midsize sport-utility
vehicles. Some of the vehicles the impacted plants build include
the Chevrolet Traverse SUV and the Cadillac XT5 and XT6 SUVs.
GM also will extend closures of a Kansas City-area factory and a
plant in Ontario until May 10. Both facilities have been closed
since February, as GM diverts chips from less-popular models to
large pickup trucks and SUVs, which are its biggest profit
producers.
The extended shutdowns come as auto makers have been grappling
with the semiconductor chip shortage. Global auto makers have been
cutting production for months as they scramble to line up chip
supplies, with executives saying the shortage could last several
more months.
The seeds of the auto industry's chip shortage were planted last
spring, when auto makers and suppliers cut their production
schedules as the pandemic clouded the outlook for vehicle
sales.
Meanwhile, chip producers have been scrambling to keep pace with
strong demand from makers of laptops, gaming systems and other
electronic devices that have been in high demand, curbing the
supply of automotive chips.
Shares of GM were down 2.7% Thursday morning at $59.21 a
share.
Write to Mike Colias at Mike.Colias@wsj.com and Allison Prang at
allison.prang@wsj.com
(END) Dow Jones Newswires
April 08, 2021 11:05 ET (15:05 GMT)
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