GM to Stop Production of Most Large Pickup Trucks Due to Chip Shortage

DETROIT – General Motors will shut down most US and Mexican production of its profitable full-size pickup trucks next week due to the current global shortage of semiconductor chips.

The Detroit automaker on Wednesday confirmed production cuts for factories in Michigan, Indiana and Mexico that produce the Chevrolet Silverado and GMC Sierra pickup trucks.

GM has avoided stopping production of its large pickups this year due to parts shortages thanks to aggressive supply chain tactics as well as building some vehicles without the necessary chips to finish later. . It also removed some features that require chips such as wireless phone chargers.

“The global semiconductor shortage remains complex and very fluid, but GM’s global purchasing and supply chain, engineering and manufacturing teams continue to find creative solutions and make progress working with it. the supply base to minimize the impact on our most demanded and limited capacity vehicles. , including full-size trucks and SUVs for our customers, ”the company said in an emailed statement.

The cuts include the temporary shutdown of production next week at GM’s Fort Wayne, Indiana assembly plant and its Silao, Mexico assembly plant. Its Flint, Michigan assembly plant, which builds heavy-duty trucks, will also be upgraded to a three-shift crew. Full production at the factories is expected to resume the week of Aug. 2, GM said.

The origin of the shortage dates back to early last year when Covid caused gradual closures of vehicle assembly plants. As the facility closed, wafer and chip suppliers diverted parts to other industries such as consumer electronics, which should not be as affected by door-to-door orders.

The problem is expected to cost the global auto industry $ 110 billion in revenue in 2021, according to consulting firm AlixPartners.