GM to cut North American production, citing chip shortage

WASHINGTON, Sept. 2 (Reuters) – General Motors Co (GM.N) will cut production at most North American assembly plants this month amid the current semiconductor chip shortage, which is hitting its trucks and its profitable sport utility vehicles, he said Thursday.

America’s largest automaker will shut down production next week at its Fort Wayne, Indiana plant and its Silao, Mexico plant, both of which make pickup trucks. In total, GM cut production at eight North American assembly plants in September.

The industry-wide chip shortage is driving massive cuts in automotive production around the world.

Earlier this week, Ford Motor Co announced that it would also cut production of trucks next week due to the chip shortage, while Toyota Motor Corp (7203.T) announced last month that it would cut production. world production in September by 40% compared to its previous plan.

GM will shut down production at its Wentzville, Missouri, plant for two weeks beginning Sept. 6, which builds midsize trucks and full-size vans. GM will also shut down production at the CAMI Assembly in Canada and the San Luis Potosi Assembly in Mexico for two additional weeks. The company builds its Equinox SUV in both factories.

The automaker is also idling production for an additional two weeks at its Lansing Delta Township plant that builds the Chevrolet Traverse and Buick Enclave.

GM’s Spring Hill, Tennessee plant to cut two weeks of production for the GMC Acadia, Cadillac XT5 and Cadillac XT6 in September, while its Ramos, Mexico plant will take two more weeks of production shutdown from Blazer, while Equinox production will be down during the week of September 27.

Equinox production has been declining since August 16.

GM said during the production halt it would repair and ship unfinished vehicles from many affected factories, including Fort Wayne and Silao.

Reporting by David Shepardson Editing by David Goodman and David Evans

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