GM to halt most giant pickup truck manufacturing because of chip scarcity
John Gress | Reuters
The Detroit automaker confirmed the manufacturing cuts Wednesday for vegetation in Michigan, Indiana and Mexico that produce the Chevrolet Silverado and GMC Sierra pickups.
GM has prevented halting manufacturing of its giant pickups this yr as a result of elements scarcity by way of aggressive provide chain techniques in addition to constructing some automobiles with out the wanted chips to be accomplished later. It additionally has lower some options that require chips resembling wi-fi telephone chargers.
“The worldwide semiconductor scarcity stays complicated and really fluid, however GM’s world buying and provide chain, engineering and manufacturing groups proceed to search out inventive options and make strides working with the provision base to reduce the influence to our highest-demand and capacity-constrained automobiles, together with full-size vans and SUVs for our clients,” the corporate stated in an emailed assertion.
The origin of the scarcity dates to early final yr when Covid precipitated rolling shutdowns of auto meeting vegetation. Because the services closed, the wafer and chip suppliers diverted the elements to different sectors resembling client electronics, which weren’t anticipated to be as damage by stay-at-home orders.
The issue is anticipated to value the worldwide automotive trade $110 billion in income in 2021, in line with consulting agency AlixPartners.