GM to halt most massive pickup truck manufacturing because of chip scarcity
Vehicles come off the meeting line at GM’s Chevrolet Silverado and GMC Sierra pickup truck plant in Fort Wayne, Indiana, July 25, 2018.
John Gress | Reuters
DETROIT – Common Motors will halt most U.S. and Mexican manufacturing of its worthwhile full-size pickup vans subsequent week because of the ongoing international scarcity of semiconductor chips.
The Detroit automaker confirmed the manufacturing cuts Wednesday for vegetation in Michigan, Indiana and Mexico that produce the Chevrolet Silverado and GMC Sierra pickups.
GM has prevented halting manufacturing of its massive pickups this 12 months because of the components scarcity by means of aggressive provide chain techniques in addition to constructing some automobiles with out the wanted chips to be accomplished later. It additionally has minimize some options that require chips similar to wi-fi telephone chargers.
“The worldwide semiconductor scarcity stays advanced and really fluid, however GM’s international buying and provide chain, engineering and manufacturing groups proceed to seek out artistic options and make strides working with the provision base to attenuate the affect to our highest-demand and capacity-constrained automobiles, together with full-size vans and SUVs for our clients,” the corporate stated in an emailed assertion.
The cuts embody quickly halting manufacturing subsequent week at GM’s Fort Wayne Meeting plant in Indiana and at its meeting plant in Silao, Mexico. Its Flint Meeting plant in Michigan the place heavy-duty vans are constructed, will go down to 1 shift from three shifts as nicely. Full manufacturing on the vegetation is anticipated to renew the week of Aug. 2, GM stated.
The origin of the scarcity dates to early final 12 months when Covid triggered rolling shutdowns of car meeting vegetation. Because the amenities closed, the wafer and chip suppliers diverted the components to different sectors similar to shopper electronics, which weren’t anticipated to be as harm by stay-at-home orders.
The issue is anticipated to value the worldwide automotive business $110 billion in income in 2021, in response to consulting agency AlixPartners.