Automobile

GM announces more ‘no chips’ output cuts

General Motors is temporarily halting output at plants or extending shutdowns at several North America plants due to the ongoing semiconductor chip shortage impacting the global automotive industry, a US media report said.

CNBC said the temporary plant closures range from one or two weeks to several additional weeks for plants that have already been idled due to the parts disruption. GM also will restart production Monday of midsize pickups after a two-week shutdown due to the shortage at a plant in Missouri.

The cost of the closures had been factored into the company’s earnings forecast for the year, GM told CNBC. The automaker expected the problem would reduce its operating profit by US$1.5bn to $2bn this year.

“We continue to work closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impact on GM,” the automaker said in a statement emailed to CNBC. “Our intent is to make up as much production lost at these plants as possible.”

The report said the plant in Spring Hill, Tennessee would close from Saturday until 24 April, according to a message from the United Auto Workers union to workers seen by CNBC. The plant builds the GMC Acadia and Cadillac XT5 and XT6 crossovers and GM confirmed the shutdown.

GM also told CNBC the crossover plant which produces the Chevrolet Traverse and Buick Enclave near Lansing, Michigan would halt output the week of 19 April while production of the Chevrolet Blazer at a plant in Mexico would also be axed that week.

CNBC added GM also was extending downtime at plants in Kansas and Canada which produce cars and crossovers until past mid-May.

In brighter news, production of the Chevrolet Colorado and GMC Canyon midsize pickups was scheduled to restart on Monday after a two week hiatus, the report added.



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