GM Continues To Cut Production Through March Due To Global Chip Shortage: News

Chip shortages are affecting automakers across the industry

(Photos: General Motors)

Global semiconductor shortages are hammering production across multiple industries.

On Tuesday, General Motors announced it would continue production cuts at three of its North American plants due to an ongoing, large-scale chip shortage. Other automakers including Ford, Stellantis, Toyota, Nissan, Subaru, Honda, Mazda and Volkswagen have also been facing issues, as growing demand across several industries hammers semiconductor manufacturers like Taiwanese company TSMC. For its part, GM said it would cut production at its affected plants until mid-March. That’s when the company, and several others, hope supply will start to meet the enormous demand.

“GM’s plan is to leverage every available semiconductor to build and ship our most popular and in-demand products,” said spokesperson David Barnas. While popular vehicles like the Chevy Silverado aren’t affected at the moment, idling other plants does impact several other GM models. Affected plants include the Fairfax facility in Kansas City (which builds the Chevy Malibu and Cadillac XT4); the CAMI plant in Ingersoll, Ontario (Chevy Equinox); and the assembly plant in San Luis Potosi, Mexico (Chevy Trax/GMC Terrain). It will halve production in South Korea.

Then there’s the Wentzville, Missouri plant, which builds the Chevy Colorado and GMC Canyon. While the plant won’t completely idle, it will partially assemble some vehicles. GM faces a similar situation at its Ramo Arizpe, Mexico plant, which builds the Blazer SUV. As chip makers scramble to boost production, industry analyst IHS Markit says the shortage may cut global auto output by 670,000 vehicles by March 31.

Over the entire year, production may fall short by up to 1 million vehicles. While that is just a projection for now, we will have to see how the industry performs in the back half of 2021.

H/T to Reuters for their reporting.