Friday 3 September 2021 7:29 am

General Motors shuts eight plants amid supply shortages

Vehicle manufacturer General Motors will shut down most of its North American plants in September as the semi-conductor chip shortage continues to bite.

Yesterday the company announced it would shut four plants in the US, three in Mexico and one in Canada for up to two weeks, including two sites which make the company’s trademark Chevrolet Silverado Pickup.

In a statement, General Motors said: “these most recent scheduling adjustments are being driven by the continued parts shortages caused by semiconductor supply constraints from international markets experiencing Covid-19-related restrictions.”

The news comes as both staff shortages compound a worldwide semi conductor shortage which is disrupting global supply chains. New cars require dozens of microchips, but manufacturers were slow to order them following a downturn in sales during the pandemic.

General Motors said it will use the downtime to help clear a backlog of orders which have been delayed because of shortages.

The company said it will “repair and ship unfinished vehicles from many impacted plants, including Fort Wayne and Silao, to dealers to help meet the strong customer demand for our products.”

Rival car manufacturer Ford will also be halting manufacturing at its Kansas City Assembly Plant while shifts will be cut at plants in Michigan and Kentucky. 

GM Motors’ share price is trading down 0.33 per cent today.

Read more: Semiconductor chip shortage puts on the brakes for Volkswagen and Toyota