Business

Chip shortage forces GM to extend factory closures

General Motors Co. will reduce production at most North American assembly plants this month because of the ongoing semiconductor chip shortage, hitting its profitable truck and sport utility vehicles, it said on Thursday.

Automakers have been shutting factories around the world due to semiconductor shortage

GM's CAMI plant in Ingersoll, Ont., is one of many the automaker is being forced to temporarily shut down because it can't find enough microchips. (Dave Chidley/The Canadian Press/The Associated Press)

General Motors Co. will reduce production at most North American assembly plants this month because of the ongoing semiconductor chip shortage, hitting its profitable truck and sport utility vehicles, it said on Thursday.

The largest U.S. automaker will halt production next week at its Fort Wayne plant in Indiana and its Silao plant in Mexico, both of which build pickup trucks. In total, GM is cutting production at eight North American assembly plants in September.

The company's CAMI plant in Ingersoll, Ont., — which makes the Equinox SUV — is included in the moves. "CAMI Assembly will extend downtime to include the weeks of Sept. 20 and Sept. 27, 2021," the company told employees in a memo obtained by CBC News.

The industrywide chip shortage is causing massive auto production cuts around the globe.

Earlier this week, Ford Motor Co. said it will also cut truck production next week because of the chip shortage, while Toyota Motor Corp. said last month it will slash global production for September by 40 per cent from its previous plan.

GM will halt production at its Wentzville, Mo., plant that builds mid-size trucks and full-size vans for two weeks starting Sept. 6. GM will also halt production at the San Luis Potosi assembly plant in Mexico for two additional weeks. The company builds its Equinox SUV at both plants.

The automaker is also idling production for two additional weeks at its Lansing Delta Township plant that builds the Chevrolet Traverse and the Buick Enclave.

GM will cut two weeks of production in September at its plant in Spring Hill, Tenn., that builds the GMC Acadia, Cadillac XT5 and Cadillac XT6, while its Ramos, Mexico, plant will take two additional weeks of downtime for Blazer production. Equinox production will be down through the week of Sept. 27.

With files from CBC News

Add some “good” to your morning and evening.

A variety of newsletters you'll love, delivered straight to you.

Sign up now

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Become a CBC Member

Join the conversation  Create account

Already have an account?

now