Tech

Chip shortage disrupts General Motors factories


She said General Motors, the parent company of Chevrolet, GMC, Cadillac and Buick, has temporarily halted production at six of its North American plants due to a global shortage of chips.

General Motors is the latest major automaker to be affected by a shortage of basic computer chips.

Four of the company’s US plants are affected, and another four in Mexico and Canada remain idle for several weeks as the company ramps up its chip supplies.

The production halt affects the company’s most profitable vehicles, including pickup trucks and SUVs.

A company spokesperson said: “During the downtime, we are repairing and shipping incomplete vehicles from several affected factories to dealers to help meet strong customer demand for our products.”

He added: Although the situation is still very complex and changing. However, we remain confident that our team can continue to search for innovative solutions to reduce the impact on vehicles with higher demand and limited capacity.

Affected vehicles include the Chevy Silverado, Cheyenne, Traverse, Equinox, Express, GMC Acadia, Sierra, Savana, Terrain, Canyon, Buick Enclave, Cadillac XT5 and Cadillac XT6.

This is the second time the company has had to announce a temporary factory closure in response to the chip shortage.

The automaker had stopped working at several factories for two weeks in April.

Read also: Hyundai is serious about air taxi efforts

Chip shortage disrupts General Motors factories

General Motors is not alone in being affected by the global shortage of semiconductor chips. Which shows no signs of improvement.

Virtually every automaker has had to cut production and temporarily close factories in response. Including Volkswagen, Ford and Toyota.

Tesla, which makes far fewer cars than most of its competitors, has also been affected. It said it had to rewrite its vehicle software to support alternative chips.

Tesla CEO Elon Musk said that the global chip shortage situation remains very serious.

GM executives did not specify how much production they expected to lose due to the lack of chips. But the CEO said teams are working to convert chips from cars to pickup trucks, large SUVs and new electric cars.

The company confirmed that the shortfall is costing between $1.5 and $2 in profits this year due to lost production.

Read also: General Motors removes wireless charging due to lack of chips

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