General Motors (NYSE: GM) said today it will extend shutdowns of three of its North American factories until at least mid-March, amid a continuing global shortage of semiconductor chips.
GM is one of many global automakers who have had to cut production due to a shortage of computer chips. Chipmakers have struggled to meet orders for automotive-grade silicon while facing increased demand from manufacturers of high-end personal computers and peripherals.
Demand for personal computers, including high-end gaming computers, has risen sharply amid the pandemic.
The affected GM factories are all assembly plants that manufacture finished vehicles:
- GM Fairfax Assembly, in Fairfax, Kansas, builds the Chevrolet Malibu sedan and the Cadillac XT4 crossover SUV.
- GM’s CAMI plant in Ingersoll, Ontario manufactures the Chevrolet Equinox crossover.
- GM’s San Luis Potosí assembly plant in San Luis Potosí, Mexico builds the Equinox, the smallest Chevrolet Trax crossover, and the GMC Terrain SUV.
DG initially announced the temporary closures on February 4, with a production slowdown at a fourth plant in South Korea. At that time, he said he would provide weekly updates; he now expects the three North American factories to sit idle for at least four more weeks.
GM has not provided an update on the South Korean plant.
In a statement, GM reiterated that it prioritizes manufacturing high-demand products, including its full-size pickup trucks, large truck-based SUVs and the Corvette sports car. In addition to being in high demand, priority vehicles are among GM’s most profitable product lines.
Gm goes announces its fourth quarter and full year 2020 results and provide guidance for 2021 before the market opens on Wednesday February 10.
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