GM to halt pickup truck production in Indiana due to chip shortage
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July 25, 2018: Trucks are assembled at GM’s Chevrolet Silverado or GMC Sierra pickup truck factory in Fort Wayne.
John Gress | Reuters
DETROIT – General MotorsDue to a shortage in semiconductor chips, pickup truck production will be stopped at an Indiana factory for the next two weeks. This has been a problem that has plagued the automotive industry worldwide for over a year.
Automakers were expecting that the supply of critical components for new cars, such as chips, would gradually increase over the course of this year. However, other issues in the supply chain could cause problems, like Russia’s ongoing invasion of Ukraine,Such expectations are now clouded.
CNBC was recently informed by Mark Reuss of GM that chips supplies are “getting a little bit better”. However, the crisis is not over. Last week, he stated that the crisis was not over. “We are doing our best.”
GM Fort Fort Wayne, Ind. According to company announcements Friday, the plant will not be operational between April 4th and April 11th. It produces Chevrolet Silverado full-size pickup trucks as well as GMC Sierra semi-trucks.
Automobile manufacturers have prioritized chips for the highest-demand, most lucrative vehicles. For the Detroit automakers, this includes pickup trucks as well large SUVs.
We have had a better overall consistency in our semiconductor supply during the first quarter than we did last year. In a Friday statement, GM stated that this has resulted in an improvement in production and delivery during the first three month of the year. We are working closely with our suppliers to minimize any uncertainty in the future.
GM makes Silverado, Sierra and other pickups at its plants in Mexico as well as Canada. Flint, Mich. produces the larger and more heavy-duty models.
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