Microchip Shortage Stunts GM’s Assembly Plant Production – Operations


General Motors will shutdown or reduce production at four of its global assembly plants beginning the week of Feb. 8, 2021 due to the ongoing automotive semiconductor shortage, according to the automaker.

GM said it will close down its assembly plants in Fairfax, Kansas; Ingersoll, Ontario; and San Luis Potosi, Mexico. The automaker said it will also operate at half capacity at it’s Bupyeong, Korea assembly plant.

“Due to the fluidity around the availability of parts, our current plan is to update the plants each week,” the automaker said. “Our intent is to make up as much production lost at these plants as possible. Importantly, this issue will not impact our commitment to an all-electric future.” 

Vehicles affected by the shutdown include the Chevrolet Malibu; Cadillac XT4; Chevrolet Equinox; Chevrolet Trax; GMC Terrain; and the Buick Encore, according to Reuters.

The semiconductor shortage has impacted other automakers, including:

  • Subaru cut production at two auto plants – one in Japan and the other in Lafayette, Indiana. While there were production slowdowns, Subaru expects all production will be made up. Subaru said the year-end projected volume target is unchanged.
  • Volkswagen has reduced production in China and Germany as it is having difficulty sourcing microchips for its electronic stability controls and ABS braking systems.
  • Likewise, but for different reasons, Toyota reduced output of the Tundra at its San Antonio plant, and similarly FCA and Honda have reduced output at some of their plants due to the chip shortage.

“Despite our mitigation efforts, the semiconductor shortage will impact GM production in 2021,” GM said. “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 – for our customers.”

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