Advertisement

General Motors halts production due to semiconductor shortage

GM described supplies for chips as "very fluid," adding that despite efforts to mitigate the fallout, the semiconductor shortage will impact GM production in 2021

Print Friendly, PDF & Email

General Motors will temporarily halt production at three factories and cut output by half at a fourth due to the global shortage of semiconductors, the auto giant said Wednesday.

Starting next week, GM will suspend output at a US factory in Kansas, another in the Canadian province of Ontario and a third in San Luis Potosi, Mexico. A plant in South Korea will be run at half capacity.

The announcement is the latest ripple effect of a global supply crunch that stemmed in part from outsized chip demand for game consoles and other consumer electronics during the coronavirus pandemic.

Read more: MG Gloster luxury SUV soon to hit Pakistan

GM described supplies for chips as “very fluid,” adding that despite efforts to mitigate the fallout, “the semiconductor shortage will impact GM production in 2021,” according to a news release.

“We are currently assessing the overall impact, but our focus is to keep producing our most in-demand products — including full-size trucks and SUVs and Corvettes.”

Unionized staff at GM plants in the United States and Canada will continue to receive benefits guaranteed under their contracts, generally around 75 percent of their pay, a GM spokesman told AFP.

IHS Markit said in a January 13 note that the biggest disruption due to the supply crunch was in Mainland China, where vehicle output could drop by 250,000 units in the first quarter.

Read more: US automakers planning to launch electric vehicles in Pakistan

Europe could lose 100,000 units in the quarter, with the supply effects also hitting North America, Japan and India, IHS said.

Latest

Who is trying to hurt Pakistan’s cricket?

The extreme disappointment of the cancellation of the New Zealand and England tour was lessened somewhat by the historic 10 wickets win over India. In Pakistan almost for a decade now cricket is being played peacefully and to prove a point a few days after New Zealand ran off from Pakistan.