• January 31, 2023

GM halting production at several North American plants due to chip shortage

General Motors Co.
GM, -1.27%
will cease production at several North American factories and extend shutdowns in a few others due to a protracted semiconductor die shortage that is upsetting auto industry hopes for a recovery this year.

The automaker announced Thursday that three plants that were previously unaffected by the chip shortage will be shut down for a week or two or their performance will be reduced, including a plant in Tennessee and another in Michigan, which houses popular midsize sport utility vehicles getting produced. The Chevrolet Traverse SUV and the Cadillac XT5 and XT6 SUV are affected.

GM will also extend the closure of one plant in Kansas City and one plant in Ontario through May 10th. Both facilities have been closed since February as GM rerouted chips from less popular models to large pickups and SUVs, which is the biggest win for producers.

“GM continues to use every available semiconductor to build and ship our most popular and sought-after products,” said a company spokesman. So far, GM has avoided downtime at the four factories that make the company’s largest pickups and SUVs, he said.

An expanded version of this article is posted on WSJ.com.

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