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GM temporarily shuts down North American factories because of chip shortage

Normal Motors, mother or father firm of Chevrolet, GMC, Cadillac, and Buick, stated it was temporarily halting manufacturing at six of its North American factories because of this of the worldwide chip shortage. It’s the newest main automaker to be affected by the tight provide of important pc chips.

4 of GM’s US-based crops will probably be affected: Fort Wayne, Indiana; Wentzville, Missouri; Spring Hill, Tennessee; and Lansing, Michigan. 4 different factories in Mexico and Canada may even go darkish for a number of weeks as GM works to shore up its provide of chips. The halt in manufacturing will have an effect on GM’s most worthwhile autos, together with pickup vehicles and SUVs.

“Through the downtime, we’ll restore and ship unfinished autos from many impacted crops, together with Fort Wayne and Silao, to sellers to assist meet the robust buyer demand for our merchandise,” a spokesperson stated in an e mail. “Though the scenario stays advanced and really fluid, we stay assured in our crew’s skill to proceed discovering inventive options to reduce the affect on our highest-demand and capacity-constrained autos.”

Affected autos embrace the Chevy Silverado, Cheyenne, Traverse, Equinox, and Specific; GMC Acadia, Sierra, Savana, Terrain, and Canyon; Buick Enclave; and Cadillac XT5 and XT6.

That is the second time GM has needed to announce momentary manufacturing facility shutdowns in response to the chip shortage. The automaker, which is the biggest in North America, beforehand idled a number of factories for 2 weeks again in April.

In fact, GM isn’t alone in feeling the ache from the worldwide shortage of semiconductor chips, which is displaying no indicators of enchancment. Virtually each automaker has needed to minimize manufacturing and temporarily shut down factories in response, together with Volkswagen, Ford, and Toyota.

Even Tesla, which makes far fewer autos than most of its rivals, stated that it needed to rewrite its vehicles’ software to assist various chips. Tesla CEO Elon Musk stated throughout an earnings name that “the worldwide chip shortage scenario stays fairly severe.”

Throughout a latest earnings name, GM executives wouldn’t specify how a lot manufacturing they anticipate to lose to the chip shortage. However CEO Mary Barra stated buying, manufacturing, engineering, and gross sales groups are working to divert the chips from vehicles and smaller SUVs to full-size pickup vehicles, huge SUVs, and new electrical autos. The corporate harassed that the shortage would price $1.5 billion to $2 billion in earnings earlier than taxes this 12 months as a consequence of misplaced manufacturing.

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