General Motors will cut production during the week of February 8 at Fairfax, Kansas, Ingersoll , Ontario, and San Luis Potosi in Mexico, according to Reuters. The automaker will operate at half capacity at its Bupyeong 2 plant in South Korea after the global shortage of semiconductor chips hit the company.
- GM aims to keep production running at its plants, although it did not disclose how much volume it would lose or the suppliers to be affected by the chip shortage
- AutoForecast Solutions, which tracks production, estimates GM’s combined lost volume would total almost 10,000 vehicles next week.
- The automaker intends to make up as much lost production as possible, even as the company is working with suppliers to find solutions and mitigate shortage impacts.
- The chip shortage has led several automakers to cut vehicle production.
- The global chip shortage is expected to cause production in the global auto sector to be 672,000 vehicles lower than expected in the first quarter.
- Analysts predict the chip shortage to last into the third quarter.
- Taiwanese chipmakers have promised to increase production, and the government has urged them to address the problem.
General Motors stock is currently gaining. GM: NYSE is up 1.65%
