GM to halt most large pickup truck production due to chip shortage

Vans arrive off the assembly line at GM’s Chevrolet Silverado and GMC Sierra pickup truck plant in Fort Wayne, Indiana, July 25, 2018. 

John Gress | Reuters

DETROIT – Normal Motors will halt most U.S. and Mexican output of its financially rewarding complete-dimensions pickup vehicles up coming 7 days due to the ongoing world wide shortage of semiconductor chips.

The Detroit automaker verified the production cuts Wednesday for crops in Michigan, Indiana and Mexico that develop the Chevrolet Silverado and GMC Sierra pickups.

GM has averted halting generation of its huge pickups this 12 months thanks to the elements shortage as a result of aggressive offer chain techniques as properly as developing some autos without the need of the essential chips to be completed afterwards. It also has lower some characteristics that call for chips these as wireless cellphone chargers.

“The world wide semiconductor lack remains sophisticated and pretty fluid, but GM’s worldwide paying for and provide chain, engineering and production teams carry on to come across inventive answers and make strides operating with the supply foundation to lessen the effect to our greatest-demand and ability-constrained autos, together with complete-sizing vans and SUVs for our shoppers,” the corporation said in an emailed assertion.

The cuts include quickly halting manufacturing following 7 days at GM’s Fort Wayne Assembly plant in Indiana and at its assembly plant in Silao, Mexico. Its Flint Assembly plant in Michigan in which significant-duty vehicles are crafted, will go down to one change from 3 shifts as well. Full output at the plants is envisioned to resume the week of Aug. 2, GM mentioned.

The origin of the scarcity dates to early last year when Covid brought on rolling shutdowns of automobile assembly vegetation. As the amenities shut, the wafer and chip suppliers diverted the parts to other sectors these kinds of as client electronics, which weren’t predicted to be as hurt by continue to be-at-dwelling orders.

The dilemma is expected to cost the world automotive business $110 billion in revenue in 2021, according to consulting business AlixPartners.