General Motors Co., an American automotive corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts, has revealed plans to halt the production of its profit-generating trucks for the first time from next week as the industry witnessing an ongoing shortage of semiconductor chips.
As per credible reports, GM will halt production of GMC Sierra and light-duty Chevrolet Silverado pickups at its Fort Wayne Assembly plant and its Silao Assembly facility during the week of July 26. That same week, the Flint Assembly factory, which produces heavy-duty Silverado and Sierra trucks, would be reduced to one shift. The entire production is estimated to resume most probably in the week of August 2.
The U.S. carmaker has primarily protected its full-size truck output this year, while crosstown rivals Stellantis NV and Ford Motor Co. both have had to cease production at various points.
Since the beginning of the year, semiconductor shortage has shaken the auto industry, bringing inventory levels to new lows as consumer demand remains high. As a result, experts predict that billions of dollars in revenue and millions of vehicles will be lost. Additionally, the impact has been evident in auto sales and earnings statistics.
Repeatedly, Ford has been forced to shut down the production of its top-selling F-150. However, GM's have continued to operate until now. Ford's truck supply was impacted so heavily by the chip shortage in the second quarter that sales of its F-Series franchise drop behind the Stellantis' Ram and the Silverado after a long reign of dominance in the Detroit Three truck wars.
Reports claim that semiconductors, or chips, are primarily made in Asia, where the case of coronavirus have spiked in recent weeks. Commenting on which, GM spokesman David Barnas said that these recent adjustments in production are cause of temporary parts shortages from international markets that are experiencing COVID-19-related restrictions, and GM expects it to be a short-term issue.