GM forced to cut production of midsize pickups due to chip shortage

A Traditional Motors employee works Dec. 13, 2019 at the automaker’s plant in Wentzville, Missouri.

Describe by Melissa Vaeth for Traditional Motors

Traditional Motors will suspend production of its midsize pickup autos due to a world semiconductor chip shortage. It be the latest shutdown because the automaker prioritizes production of its elevated, more marvelous pudgy-size pickups and SUVs.

Downtime at the Missouri plant will initiating Monday and pace through April 12, per a message despatched to employees on Wednesday by the United Auto Employees union native. The plant produces GMC Canyon and Chevrolet Colorado pickups. Van production at the energy would possibly maybe well no longer be impacted, GM acknowledged.

GM will furthermore pull forward scheduled downtime for the plant by two weeks to Might maybe well presumably well also honest 24 through July 19 to “allow for more time to build product” at some stage in the 2nd half of of 2021, the union acknowledged. GM spokesman David Barnas confirmed the plans.

As successfully as to the pickups, Barnas acknowledged GM will prolong downtime at a vehicle plant in Michigan by two weeks to mid-April. GM has immediate shuttered or in the reduction of production at several crops that kind autos or crossovers to prioritize production of its pudgy-size pickups and SUVs. 

“GM continues to leverage every accessible semiconductor to build and ship our most popular and in-ask products, including pudgy-size autos and SUVs for our possibilities,” Barnas acknowledged in an emailed statement. “We now bear no longer taken downtime or diminished shifts at any of our pudgy-size truck crops as a result of dearth.”

GM crops in Kansas and Ingersoll, Ontario, that shuttered in early February over the chip shortage are anticipated to dwell closed unless a minimum of mid-April. Flowers in Brazil and South Korea bear furthermore been affected. A plant in Mexico is anticipated to reopen April 5 after being shut down since Feb. 8.

GM’s actions advance because the auto business attempts to take care of the world chip shortage. Suppliers directed semiconductors a ways from the automotive business as more than one crops shut down final year due to Covid. Consulting firm AlixPartners estimates the chip shortage will in the reduction of $60.6 billion in earnings from the world automotive business this year.

Semiconductors are key parts passe in the infotainment, energy steering and braking of contemporary autos, among diverse programs. GM expects the chip shortage to in the reduction of $1.5 billion to $2.5 billion from its free money float in 2021.