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

Trucks 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 – General Motors will halt most U.S. and Mexican production of its worthwhile full-size pickup vans subsequent week due to the continuing world shortage of semiconductor chips.

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

GM has prevented halting production of its large pickups this year due to the components shortage by way of aggressive provide chain ways in addition to constructing some autos with out the wanted chips to be accomplished later. It additionally has lower some options that require chips similar to wi-fi cellphone chargers.

“The global semiconductor shortage remains complex and very fluid, but GM’s global purchasing and supply chain, engineering and manufacturing teams continue to find creative solutions and make strides working with the supply base to minimize the impact to our highest-demand and capacity-constrained vehicles, including full-size trucks and SUVs for our customers,” the company mentioned in an emailed assertion.

The cuts embrace briefly halting production subsequent week at GM’s Fort Wayne Assembly plant in Indiana and at its meeting plant in Silao, Mexico. Its Flint Assembly plant in Michigan the place heavy-duty vans are constructed, will go down to one shift from three shifts as nicely. Full production on the crops is anticipated to resume the week of Aug. 2, GM mentioned.

The origin of the shortage dates to early final year when Covid induced rolling shutdowns of auto meeting crops. As the amenities closed, the wafer and chip suppliers diverted the components to different sectors similar to client electronics, which weren’t anticipated to be as damage by stay-at-home orders.

The drawback is anticipated to price the worldwide automotive trade $110 billion in income in 2021, in accordance to consulting agency AlixPartners.

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