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GM Shuts Three Plants Due To Shortage of Semiconductor

COLMA, CA - JANUARY 03: New cars sit on the sales lot of a Chevrolet dealership on January 3, 2013 in Colma, California. Chrylser and General Motors led automakers in the best sales year since 2007. Chrysler's December sales jumped 10% while GM's was up 4.9%. (Photo by Justin Sullivan/Getty Images)

General Motors will temporarily halt production at three factories and cut output by half at a fourth due to the global shortage of semiconductors, the auto giant said Wednesday. Starting next week, GM will suspend output at a US factory in Kansas, another in the Canadian province of Ontario, and a third in San Luis Potosi, Mexico. A plant in South Korea will be run at half capacity. The announcement is the latest ripple effect of a global supply crunch that stemmed in part from outsized chip demand for game consoles and other consumer electronics during the coronavirus pandemic.

GM described supplies for chips as ‘very fluid,’ adding that despite efforts to mitigate the fallout, ‘the semiconductor shortage will impact GM production in 2021,’ according to a news release.

Unionized staff at GM plants in the United States and Canada will continue to receive benefits guaranteed under their contracts  ‘We are currently assessing the overall impact, but our focus is to keep producing our most in-demand products, including full-size trucks and SUVs and Corvettes.’

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