Normal Motors will preserve its Fairfax Meeting plant in Kansas shut down till the primary week of July because of a scarcity of semi-conductor chips.
Fairfax Meeting, which builds the Chevy Malibu sedan and Cadillac XT4 crossover, has been shut down since early February because of a provide scarcity of microchips. The automaker supplied an replace on the scenario as Fairfax this week, confirming it would preserve the plant idled till a minimum of the primary week of July.
The American automaker mentioned final week that its CAMI plant in Ingersoll, Ontario, which builds the Chevy Equinox crossover, would additionally stay shut down till the top June.
In a press release, GM mentioned it’s staying in touch with chip suppliers to observe the scenario and can prioritize its hottest fashions, comparable to full-size vehicles and SUVs, whereas the chip scarcity lasts.
“We proceed to work carefully with our provide base to mitigate the short-term impression and leverage each accessible semiconductor to construct and ship our hottest and in-demand merchandise, together with full-size vehicles and SUVs for our prospects,” the automaker mentioned.
Equally, the automaker confirmed this week that its San Luis Potosi plant in Mexico will take downtime Could 17th to the 24th, whereas the Ramos Arizpe plant within the nation will stay idle between Could 3rd and Could 24th. The San Luis Potosi facility builds the Chevy Equinox and GMC Terrain, whereas Ramos Arizpe produces the Chevy Blazer and Equinox.
The automaker’s Wentzville Meeting plant in Missouri has additionally moved from three shifts to at least one amid the chip scarcity. The Wentzville plant produces the Chevy Colorado and GMC Canyon mid-size pickups, together with the Chevy Specific and GMC Savana utility vans.
GM stays hopeful that will probably be in a position to make up for misplaced manufacturing later within the 12 months, however with demand for microchips persevering with to outpace provide and manufacturing, the scarcity might have an even bigger impact on auto manufacturing this 12 months than many consultants initially thought. GM Rival Ford reduce its second-quarter manufacturing outlook by half in its Q1 earnings report over the chip provide subject and mentioned the scarcity might final into early 2022.
Roughly 75 % of the world’s microchips are produced in Asia. The US, by comparability, has about 12 % of the world’s chip manufacturing capability.
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