GM cuts additional time shifts at two U.S. truck vegetation resulting from chip scarcity

GM cuts overtime shifts at two U.S. truck plants due to chip shortage

Line staff work on the chassis of full-size Basic Motors pickup vehicles on the Flint Meeting plant on June 12, 2019 in Flint, Michigan.

JEFF KOWALSKY / AFP / Getty Pictures

Basic Motors is slicing additional time manufacturing this weekend at two U.S. meeting vegetation that make its extremely worthwhile full-size pickups because of the ongoing semiconductor chip scarcity impacting the worldwide automotive trade.

The vegetation in Flint, Michigan, and Fort Wayne, Indiana, produce a mixture of the corporate’s full-size pickups, together with the Chevrolet Silverado and GMC Sierra 1500 fashions in addition to their bigger siblings.

That is the primary time the Detroit automaker has lower manufacturing shifts for its full-size pickups because of the monthslong chip scarcity. GM has considerably diminished manufacturing at its automotive and crossover vegetation in North America to prioritize chips for the pickups in addition to the corporate’s full-size SUVs.

In whole, GM is eliminating three additional time shifts between the 2 vegetation on Saturday and Sunday.

“As we proceed to handle the semiconductor affect on our vegetation, we’re balancing components availability with our skill to run effectively for your entire week,” GM mentioned in an emailed assertion.

GM additionally produces the 1500 variations of the Silverado and Sierra pickup at a plant in Mexico.

Along with the shift cuts, GM mentioned Friday it’s canceling scheduled downtime the weeks of June 28 and July 5 in any respect U.S. vegetation besides a midsize truck plant in Missouri. GM hopes manufacturing throughout these weeks, which is historically generally known as a summer season shutdown interval, will help in making up misplaced manufacturing from the primary half of the yr.

The modifications come a day after GM and Ford Motor introduced plans to briefly idle or prolong shutdowns at a number of vegetation in North America.

GM CEO Mary Barra and Ford CEO Jim Farley are anticipated to participate Monday in a digital CEO summit with the Biden administration to debate the worldwide semiconductor scarcity.

Semiconductors are key parts in automotive manufacturing and are utilized in infotainment, energy steering and braking techniques, amongst different issues. As a number of vegetation shuttered final yr resulting from Covid, suppliers directed semiconductors away from automakers to different industries, making a scarcity after shopper demand snapped again stronger than anticipated. The auto components can comprise a number of sizes and various kinds of chips.

For months, GM and Ford have been prioritizing meeting of high-margin autos akin to full-size pickups by slicing manufacturing of vehicles and crossovers. The businesses are even partially constructing pickups to finish and ship at a later date.

GM expects the chip scarcity will cut back its working revenue by $1.5 billion to $2 billion this yr, whereas Ford mentioned the scenario might decrease its earnings by $1 billion to $2.5 billion in 2021.

Consulting agency AlixPartners estimates the chip scarcity will lower $60.6 billion in income from the worldwide automotive trade this yr.

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