GM ceases production due to chip shortage

General Motors, like many other manufacturers, is suffering from the worldwide shortage of computer chips. The group will close three factories next week and let one run at half speed, but does not announce how many produced cars will go wrong because of this.

The factories in Fairfax (Kansas), Ingersoll (Ontario) and San Luis Potosi (Mexico) will close next week, GM said in a statement. In Fairfax they screw together the Cadillac XT4 and Chevrolet Malibu, while in Ingersoll the Chevrolet Equinox rolls off the production line. In Mexico, production of the GMC Terrain and three Chevrolet models is hit by the shortage: the Onix, Trax and Equinox. At the Bupyeong 2 plant in South Korea, production of the Chevrolet Trax and Malibu will run at half speed. GM does not disclose how many cars go wrong in its production schedule, but analyst AutoForecast Solutions estimates the lost production at about 10,000 cars.

However, GM takes into account that production will continue to suffer from the shortage of computer chips later in this year. The current measures that the group is taking will be in force for at least a week, with GM reassessing the options every week. According to the group, this is necessary because the situation is changing rapidly. The carmaker also indicates that the focus is on maintaining the production of full-size SUVs, pick-ups and the Corvette C8.

Not the only one

The shortage of computer chips affects almost every car manufacturer: Audi, Ford, Honda, Mercedes-Benz and Volkswagen, among others. Taiwanese chip manufacturer TSMC indicated last week that it wants to prioritize the production of car chips, but the company wants to optimize the production thereof first. All in all, it seems that the current shortage will continue for a while.

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