GM facing production cut in North America due to chip shortage

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GM facing production cut in North America due to chip shortage
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The chip shortage is being 'caused by semiconductor supply constraints from international markets experiencing COVID 19-related restrictions,' the company said in a statement.

North American assembly plants this month due to an industrywide semiconductor chip shortage.

America’s largest automobile manufacturer plans to stall production at four U.S. plants, three Mexican plants and one Canadian plant for weeks at various points throughout September. GM plants in Fort Wayne, Indiana and Silao, Mexico, are scheduled to go idle first, starting next week until the week of Sept. 13. These two plants produce GM’s profitable truck and sport utility vehicles.

The chip shortage is being “caused by semiconductor supply constraints from international markets experiencing COVID 19-related restrictions,” the company said in a statement.At the onset of the pandemic, many car manufacturers canceled orders they had placed with chipmakers anticipating that car sales would plummet with the implementation of stay-at-home orders.

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