GM suspends production at North American plants amid ongoing chip shortages

The move will affect many of the automaker's most profitable vehicles.

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Igor Bonifacic
September 2, 2021 4:03 PM
In this article: news, gear, transportation, tomorrow
BURBANK, CALIFORNIA - AUGUST 04: The General Motors logo is displayed at a Chevrolet dealership on August 4, 2021 in Burbank, California. In spite of a computer chip shortage, General Motors (GM) posted a $2.8 billion net profit in the second quarter. (Photo by Mario Tama/Getty Images)
Mario Tama via Getty Images

The global semiconductor shortage is about to claim another casualty. Starting on Monday, General Motors will temporarily halt production at all but four of its North American factories due to chip supply constraints. The halt in production will affect many of the automaker’s most profitable vehicles, including the Chevy Silverado and GMC Sierra.

“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 for GM told the Detroit Free Press. “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.”

This is the second time GM has had to temporarily shut down production due to the global chip shortage. The company announced a similar two-week idle back in April. The shortage has affected nearly every automaker. The same month GM scaled back production, so did Ford, Honda and BMW. It has even affected Tesla, which recently delayed both the Roadster and Semi due to supply constraints. With the shortages expected to continue until at least 2023, and no immediate solutions forthcoming, GM likely won’t be the last company to change its production schedule.

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