General Motors is reducing its overtime production shifts starting this weekend at two U.S. convention plants. These plants produce its full-size pickups but are now to be halted due to the ongoing semiconductor chip shortage.
Plants in Flint, Michigan, and Fort Wayne, Indiana, produce a combination of the company’s full-size pickups, including the Chevrolet Silverado and GMC Sierra 1500 models and their bigger in size siblings.
Chip Shortage Impact On The Automotive Industry
This is the first time that the Detroit automaker has cut off the production shifts of its full pickups due to a month-long chip shortage. GM has significantly reduced production in its automotive and crossover plants in North America to prioritize chips for the pickups as well as the company’s full-size SUVs.
In total, GM will be eliminating three overtime shifts between the two plants on Saturday and Sunday.
“As we continue to manage the impact of the semiconductor on our plants, we are balancing parts availability with our ability to run efficiently for the entire week,” GM said in an emailed statement.
General Motors And Ford
GM also produces 1500 versions of the Silverado and Sierra pickup plant at a plant in Mexico.
In addition to the shift cuts, GM said Friday it is canceling scheduled downtime the weeks of June 28 and July 5 at all U.S. plants except a midsize truck plant in Missouri. GM hopes production during those weeks, which is traditionally known as a summer shutdown period, will assist in making up lost production from the first half of the year.
The changes come a day after GM and Ford Motor announced plans to temporarily suspend or extend the closure of several plants in North America.
GM CEO Mary Barra and Ford chief executive Jim Farley are expected to take part in Monday’s conference at the CEO Summit alongside Biden administration to discuss the shortage of semiconductors worldwide.
For months, GM and Ford have been prioritizing high-end car assemblies as fully integrated images by cutting car production and crossovers. Companies even create images to complete and post later.
GM expects chip shortages will reduce their operating income by $ 1.5 billion to $ 2 billion this year, while Ford says the situation could reduce their earnings by $ 1 billion to $ 2.5 billion by 2021.
Consultant company AlixPartners estimates that chip shortages will reduce $ 60.6 billion in revenue for the global automotive industry this year.
Synopsis
GM cuts overtime-production this weekend at two US convention plants producing its full-size pickups due to the ongoing semiconductor chip shortage.
The plants in Michigan and Indiana produce a mix of the company’s full-size pickups, including Chevrolet Silverado and GMC Sierra 1500 models as well as their larger siblings.
This is the first time that the Detroit automaker has cut off the over time production shifts of its full-size pickups due to chip shortages for months.
