Common Motors, mum or dad firm of Chevrolet, GMC, Cadillac, and Buick, mentioned it was quickly halting manufacturing at six of its North American factories because of the worldwide chip scarcity. It’s the newest main automaker to be affected by the tight provide of important laptop chips.

4 of GM’s US-based vegetation will likely be affected: Fort Wayne, Indiana; Wentzville, Missouri; Spring Hill, Tennessee; and Lansing, Michigan. 4 different factories in Mexico and Canada may also 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 automobiles, together with pickup vehicles and SUVs.

“During the downtime, we will repair and ship unfinished vehicles from many impacted plants, including Fort Wayne and Silao, to dealers to help meet the strong customer demand for our products,” a spokesperson mentioned in an e mail. “Although the situation remains complex and very fluid, we remain confident in our team’s ability to continue finding creative solutions to minimize the impact on our highest-demand and capacity-constrained vehicles.”

Affected automobiles embody 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 scarcity. The automaker, which is the biggest in North America, beforehand idled a number of factories for 2 weeks again in April.

After all, GM isn’t alone in feeling the ache from the worldwide scarcity of semiconductor chips, which is displaying no indicators of enchancment. Virtually each automaker has needed to lower manufacturing and quickly shut down factories in response, together with Volkswagen, Ford, and Toyota.

Even Tesla, which makes far fewer automobiles than most of its rivals, mentioned that it needed to rewrite its automobiles’ software program to help different chips. Tesla CEO Elon Musk mentioned throughout an earnings name that “the global chip shortage situation remains quite serious.”

Throughout a current earnings name, GM executives wouldn’t specify how a lot manufacturing they count on to lose to the chip scarcity. However CEO Mary Barra mentioned buying, manufacturing, engineering, and gross sales groups are working to divert the chips from automobiles and smaller SUVs to full-size pickup vehicles, large SUVs, and new electrical automobiles. The corporate careworn that the scarcity would value $1.5 billion to $2 billion in earnings earlier than taxes this 12 months attributable to misplaced manufacturing.


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