GM forced to cut production of mid-size pickups due to chip shortage

A Standard Motors personnel works Dec. 13, 2019 at the automaker’s plant in Wentzville, Missouri.

Photo by Melissa Vaeth for Typical Motors

Normal Motors will suspend output of its mid-sizing pickup vans due to an ongoing world semiconductor chip scarcity. It really is the most current shutdown as the automaker prioritizes generation of its larger, more rewarding whole-size pickups and SUVs.

Downtime at the Missouri plant will begin Monday and operate through April 12, according to a message to workforce Wednesday from the local United Car Personnel union. It makes GMC Canyon and Chevrolet Colorado pickups. Van generation at the facility will not be impacted, according to GM.

GM also will pull forward scheduled downtime for the plant by two weeks to May perhaps 24 by July 19 to “permit for additional time to build product or service” throughout the next half of the calendar year, the union mentioned. GM spokesman David Barnas confirmed the options.

In addition to the pickups, Barnas stated GM will prolong downtime at a motor vehicle plant in mid-Michigan by two months to mid-April. GM has temporarily shuttered or lower production at several crops that make cars and trucks or crossovers to prioritize output of its whole-size pickups and SUVs. 

“GM carries on to leverage just about every out there semiconductor to develop and ship our most popular and in-desire goods, including entire-dimensions vehicles and SUVs for our prospects,” he explained in an emailed assertion. “We have not taken downtime or diminished shifts at any of our whole-size truck crops due to the lack.”

GM plants in Kansas and Ingersoll, Ontario, that shuttered in early February more than the chip lack are predicted to keep on being closed until eventually at least mid-April. GM plants in Brazil and South Korea also have been afflicted by the scarcity. A plant in Mexico is envisioned to reopen April 5 immediately after currently being shut down since Feb. 8.

GM’s steps are the most recent as the vehicle business tries to offer with the international chip shortage following suppliers directed chips absent from the automotive industry for the duration of rolling plant shutdowns final spring owing to Covid. Consulting company AlixPartners estimates the chip lack to cut $60.6 billion in earnings from the international automotive sector this calendar year.

Semiconductor chips are particularly significant parts of new cars for infotainment techniques, electricity steering and brakes, amongst other programs. The areas can incorporate several dimensions and distinctive kinds of chips.

GM expects the chip lack to slice $1.5 billion to $2.5 billion from its no cost money circulation in 2021.