GM Extends 3 Plant Closures In North America Through Mid-March As Chip Shortage Continues

General Motors has extended three plant shutdowns that began on Monday and were originally scheduled for a week, at least in mid-March due to the current shortage of semiconductor chips affecting the global auto industry.

The decision affects the Fairfax assembly plant, Kan, which builds the Chevrolet Malibu and Cadillac XT4, as well as facilities in Canada and Mexico that produce the Chevrolet Equinox, Chevrolet Trax and GMC Terrain SUVs.

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GM did not disclose how much volume it expects to lose during shutdowns, but said in a stock statement it hopes to catch up to it by year-end as we go. that the supply problem would be resolved. Additionally, he said he could continue to build vehicles at other factories without the missing parts and store them until the chips are available for installation.

Most automakers have been affected to some extent by the shortage. After cutting back in several locations, Ford has cut production this week at the two factories that make its best-selling F-Series trucks and said in recent results that 10% to 20% of total production could be lost in the during the first half of the year, but that he thinks he can make up for that in the second half.

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The Belvedere, Ill Jeep plant that builds the Cherokee SUV was also completely shut down this week indefinitely, although the UAW local posted on Facebook that it is currently scheduled to restart on February 15.

Fifteen U.S. senators from auto-producing states, including Senators Peters and Stabenow of Michigan, sent a letter to the National Economic Council last week urging it to resolve the issue.

“This shortage threatens our post-pandemic economic recovery, the consequences of which are particularly severe in auto industry dominant states like ours,” wrote the senators.