GM is the latest automaker getting hit by the global shortage of semiconductor chips. They are taking down production next week at four assembly plants to half capacity.
GM stated the focus has been on keeping production running at plants building the highest-profit vehicles – full-size pickup trucks and SUVs as well as the Chevrolet Corvette sports car. GM said it intends to make up as much lost production as possible.
AutoForecast Solutions, which tracks production, estimated GM’s combined lost volume would total almost 10,000 vehicles next week.
Affected GM vehicles are the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox and Trax, and GMC Terrain SUVs and the Buick Encore small crossover vehicle.
“Despite our mitigation efforts, the semiconductor shortage will impact GM production in 2021,” GM spokesman David Barnas told Reuters in a statement.
“Semiconductor supply for the global auto industry remains very fluid,” he added. “Our supply chain organization is working closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM.”
Other manufacturers are being affected as well including Volkswagen, Ford, Subaru, Toyota, Nissan, Mazda.
The chip shortage is expected to cause production in the global auto sector to be 672,000 vehicles lower than anticipated in the first quarter, IHS Markit said on Wednesday. The forecasting firm expects the shortage to last into the third quarter.
AutoForecast Solutions said announced lost production globally so far due to the shortage has totaled 564,000 vehicles and estimated the total impact this year could be 964,000 vehicles.
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