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The global shortage of semiconductors has forced General Motors and Ford to further reduce their production at their North American factories, as disk inventory appears to be growing.
The shutdown is likely to shrink the dealer inventory of vehicles manufactured at the plants.
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GM says it has managed to keep factories selling hot and making very lucrative full-size pickups and SUVs.
“GM continues to use every available semiconductor to build and ship our most popular and popular products,” the company said in a statement Thursday.
The scarcity of chips has been blowing through various markets since last summer. This has made it difficult for schools to buy laptops for students who are forced to learn from home, slowing down the release of popular products like the iPhone 12 and scrambling to find the latest video games like the PlayStation 5.
GM SUSPENSIVE SUBSTANCE Truck production due to discs
But in recent weeks, it has gotten even worse, especially in the automotive industry, where factories are at a standstill because there are not enough chips to finish vehicles that are starting to look like computers on wheels. The problem was recently exacerbated by a sunken container ship that blocked the Suez Canal for nearly a week and suffocated the chips en route from Asia to Europe.
These attacks are likely to frustrate consumers who do not find the vehicle they want and sometimes with a cheaper model without so many fine electronic features. And it threatens to make a big dive into the automotive industry, which some estimate will lose $ 60 billion in sales in the first half of its year.
GM said the cuts will take place in Spring Hill, Tennessee; Ramos Arizpe, Mexico; Ingersoll, Ontario; Fairfax, Kansas; Lansing, Michigan, Delta Township; and Lansing, Michigan, Grand River factories.
GM expands 3 eliminations and adds fourth due to continuous semiconductor chip discount
Spring Hill, which manufactures the Cadillac XT5, XT6 and GMC Acadia sport utility vehicles, will be closed during the weeks of April 12 and 19. Production of the Chevrolet Blazer at Ramos Arizpe will stop for a week on April 19, while the Lansing Grand River factory, which makes the Chevrolet Camaro and Cadillac CT4 and CT5 sedans, will remain silent until April 26.
The Lansing Delta Township plant will be off for a week from April 19, which will reduce production of the Chevy Traverse and Buick Enclave SUVs. 8 February. The Ontario plant makes the Chevrolet Equinox SUV, while the Kansas plant produces the Chevy Malibu sedan and Cadillac XT4 SUV.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 60.04 | -0.78 | -1.28% |
| F | FORD MOTOR CO. | 12.50 | -0.22 | -1.73% |
Ford also said Thursday that it will close its Chicago, Flat Rock, Michigan and Transit of the Kansas City Assembly Plant in Claycomo, Missouri, during the week of April 12th. But seven U.S. plants will go through the two summer shutdown weeks in late June and early July. The factory in Chicago makes the Ford Explorer and Lincoln Aviator sports utility vehicles, while Flat Rock makes the Mustang sports car.
GM expects the chip shortage to cost it up to $ 2 billion in pre-tax profits this year due to lost production and sales. Ford supports a similar battle. In addition to GM and Ford, it seems that Nissan, Stellantis, Volkswagen and Honda have been hit the hardest.
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IHS Markit estimates that from January to March, the shortage of chips reduced North American car production by about 100,000 vehicles. In January last year, before the pandemic, the American car industry had enough vehicles to meet 77 days of demand. By February 2021, it was almost 30% lower to 55 days. Edmunds.com says discounts are lower and prices for new and used vehicles are rising.