GM forced to halt most large pickup truck production due to chip shortage

Trucks attain off the meeting line at GM’s Chevrolet Silverado and GMC Sierra pickup truck plant in Fort Wayne, Indiana, July 25, 2018. 

John Gress | Reuters

DETROIT – Standard Motors will conclude most U.S. and Mexican manufacturing of its pleasant paunchy-measurement pickup trucks subsequent week due to the the continuing global shortage of semiconductor chips.

The Detroit automaker confirmed the manufacturing cuts Wednesday for vegetation in Michigan, Indiana and Mexico that create the Chevrolet Silverado and GMC Sierra pickups.

GM has refrained from halting manufacturing of its colossal pickups this Twelve months due to the the parts shortage thru aggressive provide chain ways to boot to constructing some vehicles with out the crucial chips to be executed later. It additionally has decrease some parts that require chips equivalent to wireless cell phone chargers.

“The global semiconductor shortage stays advanced and in fact fluid, but GM’s global buying and provide chain, engineering and manufacturing teams continue to search out ingenious solutions and invent strides working with the provide substandard to decrease the impact to our absolute most realistic-demand and capacity-constrained vehicles, including paunchy-measurement trucks and SUVs for our potentialities,” the company talked about in an emailed assertion.

The cuts include temporarily halting manufacturing subsequent week at GM’s Fort Wayne Assembly plant in Indiana and at its meeting plant in Silao, Mexico. Its Flint Assembly plant in Michigan where heavy-responsibility trucks are constructed, will run down to one shift from three shifts along with. Full manufacturing at the vegetation is anticipated to resume the week of Aug. 2, GM talked about.

The origin of the dearth dates to early most attention-grabbing Twelve months when Covid introduced about rolling shutdowns of automobile meeting vegetation. Because the facilities closed, the wafer and chip suppliers diverted the parts to other sectors equivalent to user electronics, which weren’t anticipated to be as trouble by defend-at-home orders.

The reveal is anticipated to cost the global automobile exchange $110 billion in revenue in 2021, in accordance with consulting firm AlixPartners.