Automaker GM to cut more N America production amid persistent chip shortage

Author: Adam Yanelli

2021/09/16

HOUSTON (ICIS)--Global automakers continue to face supply issues related to the global shortage of semiconductors and General Motors (GM) is the latest to announce production cuts.

“These most recent scheduling adjustments are being driven by the continued parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-related restrictions,” the company said.

The US automaker will extend the downtime at its Lansing Delta Township, Michigan, plant through the week of 27 September.

The plant - which makes the Chevrolet Traverse and Buick Enclave - has been down since 19 July.

The CAMI plant in Canada - which makes the Chevrolet Equinox - and the San Luis Potosi plant in Mexico, which makes the Chevrolet Equinox and GMC Terrain, will both be down through the week of 11 October.

The Ramos plant in Mexico will be down through the week of 27 September for its Chevrolet Blazer production and will be down through the week of 11 October for its Chevrolet Equinox production.

Production of the Blazer has been down since the week of 23 August and production of the Equinox has been down since the week of 16 August.

The Lansing Grand River plant in Michigan will be down for Chevrolet Camaro and Cadillac Black Wing production through the week of 27 September.

In addition, as previously announced, Cadillac CT4 and CT5 production will be down through the week of 27 September. Cadillac CT4 and CT5 production has been down since 10 May and Chevrolet Camaro production has been down since 13 September.

Downtime at the Fairfax plant in Kansas, which makes the Cadillac XT4 and Chevrolet Malibu, will be extended through the week of 25 October.

As previously announced, Cadillac XT4 production - which has been down since 8 February - will resume beginning the week of 20 September. Chevrolet Malibu production has also been down since 8 February.

GM is also pausing production of its electric vehicle (EV), the Chevrolet Bolt, through 11 October as a result of a battery-pack shortage related to the recently announced safety recall.

The company is extending downtime to include the weeks of 27 September, 4 October and 11 October to continue to work with its supplier to update manufacturing processes.

The company said that while the situation remains complex and fluid, GM continues to prioritise full-size truck production, which remains in high demand.

The shortage of chips, which are used to control the engine, antilock brakes, power steering, fuel-monitoring system and heating and air conditioning in modern vehicles, has impacted multiple automakers as Ford, Stellantis and Toyota have also announced cuts recently.

The production cuts have translated to reduced sales.

US August sales of new light vehicles fell sharply from July and remain well below volumes from the same month a year ago,

The automotive industry is a major global consumer of petrochemicals, which contributes more than a third of the raw material costs of an average vehicle and production disruptions could severely weigh on demand.

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