Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

GM further cuts production in North America due to global chip shortage

Stock MarketsMar 24, 2021 11:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. Logo of GM atop the company headquarters 2/2

By Ben Klayman

DETROIT (Reuters) -General Motors Co extended production cuts in North America on Wednesday due to a worldwide semiconductor chip shortage that has impacted the auto sector.

The U.S. automaker said its Wentzville, Missouri, assembly plant would be idled during the weeks beginning March 29 and April 5. It will extend down time at its plant in Lansing, Michigan, which has been idled since March 15, by two weeks.

The action was factored into GM's prior forecast that it could shave up to $2 billion off this year's profit, spokesman David Barnas said. GM did not disclose how much volume would be lost by the move, but said it intended to make up as much lost production as possible later in the year.

The chip shortage came as North American auto plants were shut for two months during the COVID-19 pandemic last year and chip orders were canceled, and as demand surged from the consumer electronics industry as people worked from home and played video games. That's now left carmakers competing for chips.

Semiconductors are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.

Vehicles affected by the GM production cuts include the mid-sized pickup trucks, the Chevrolet Colorado and GMC Canyon in Missouri, and the Cadillac CT4 and CT5 and Chevy Camaro cars in Michigan.

Meanwhile, GM said its San Luis Potosi, Mexico, assembly plant, idled since Feb. 8, will resume production with two shifts beginning the week of April 5.

Also on Wednesday, Ford Motor (NYSE:F) Co said it would cut output this week of the Transit van at its Kansas City, Missouri, assembly plant due to the shortage. Production of the flagship F-150 pickup at the plant is not affected.

Last week, GM said it was building certain 2021 light-duty full-size pickups without a fuel management module, hurting their fuel economy performance by one mile per gallon.

Ford and Stellantis have said they would partially assemble and park their large pickups to finish later when chip supplies allow.

Japanese automaker Honda Motor Co on Tuesday said it would further cut North American production due to supply-chain issues, including the chip shortage.

Exacerbating the shortage was a recent fire at a Renesas Electronics chip plant in Japan. Barnas said GM was assessing the impact of the blaze. Ford is doing the same, while Stellantis and Mazda said their operations have not yet been affected.

German auto supplier Continental said it was assessing the impact of the fire and was in "daily contact" with Renesas.

"We are considering all possible measures, including the evaluation of other alternative technical solutions," Continental said in a statement.

GM further cuts production in North America due to global chip shortage
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
James Kiz
James Kiz Mar 24, 2021 12:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am a consultant in bitcoin business online trade if you really want invest on bitcoin trade you are welcome
James Kiz
James Kiz Mar 24, 2021 12:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes
James Kiz
James Kiz Mar 24, 2021 12:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am a consultant in bitcoin business online trade so if you have any problems or you want to invest
Wayne Gillispie
Wayne Gillispie Mar 24, 2021 10:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Outsourcing most of USA manufacturing jobs for the last 22+ years to China, Mexico, Korea, Vietnam, Japan and India has finally came back to bite the greedy, corrupt Corporations, CEO’s, Investors, Bankers, Governments (tax revenues), in the old arse! We’ve now lost the EV, battery and solar markets to China, Korea and Japan. Goodbye Ford and GM! Now watch what happens when the trade tensions between China and USA results in us being cut off completely. I bet Amazon, local stores are hating that us Americans are now buying straight from China through AliExpress and Alibaba! Poor babies losing that 200% markup.
John Conforti
John Conforti Mar 24, 2021 9:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Globalism is failing big time. Period.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email