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Politics GM halting production at plants in North America due to chip shortage

20:30  08 april  2021
20:30  08 april  2021 Source:   thehill.com

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General Motors Co. said Thursday that it will halt production or extend a pause at several plants in North America due to a chip shortage.

a sign on the side of a building: GM halting production at plants in North America due to chip shortage © Getty Images GM halting production at plants in North America due to chip shortage

The automaker said because of a shortage of semiconductor chips, three plants would be idled or have output reduced for one to two weeks.

David Barnas, a spokesperson for GM, confirmed to The Hill that the new closures will affect factories in Tennessee, Michigan and Mexico.

"We continue to work closely with our supply base to find solutions for our suppliers' semiconductor requirements and to mitigate impact on GM," Barnas said in a email.

Ford plans to work plants through traditional summer shutdown to recover from chip shortage

  Ford plans to work plants through traditional summer shutdown to recover from chip shortage Ford will keep several of its plants running through the summer in hopes of offsetting production delays caused by the global computer chip shortage. © Anthony Lanzilote/Bloomberg/Getty Images The Ford Motor Co. Michigan Assembly plant stands idle in Wayne, Michigan, U.S., on Monday, March 23, 2020. The auto industry is escalating its push for U.S. assistance to help weather the impact of a global pandemic that has halted or will soon stop production at 42 out of 44 plants that assemble vehicles in the country.

"Our intent is to make up as much production lost at these plants as possible."

The automaker said it will also extend the closure of a facility in Ontario and another in Kansas City through May 10. Both facilities have been closed since February.

However, GM will reopen another plan in Wentzville, Mo., in the next few days after halting production late last month.

The automaker had announced in March that they were extending downtime at its San Luis Potosi, Mexico plant through the end of the month, but recently resumed production.

GM has experienced multiple closures of plants in 2021, with the company announcing in February that North American plants would take downtime due to the semiconductor shortage.

The chip shortage has forced global automakers to cut production for months, and executives say the shortage could last for several more months.

Intel wants to make chips for automakers to help with the global shortage .
Intel has laid out a plan to help automakers dealing with the global semiconductor shortage that has left companies like GM canceling production shifts. On Monday, CEO Pat Gelsinger told Reuters Intel is in talks with firms that design silicon for carmakers to manufacture their chips at its own foundries. If all goes according to plan, he told the wire service the goal is to start producing those designs within six to nine months. “We’re hoping“We’re hoping that some of these things can be alleviated, not requiring a three- or four-year factory build, but maybe six months of new products being certified on some of our existing processes,” Gelsinger told Reuters.

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