Last updated on December 8th, 2022 at 02:47 pm
GM to cut car production at four factories due to chip shortages
A shortage of semiconductor components has already forced major automakers to cut production volumes. Now, Volkswagen, Ford, Toyota, Subaru, Nissan, Mazda, and the newly formed Stellantis alliance are joined by the American auto giant General Motors. Starting next week, he will limit the production of cars at four of his factories.
GM officials are not sharing numbers, Reuters notes, but AutoForecast Solutions expects production to drop by 10,000 vehicles. GM is doing everything it can to mitigate the damage, but semiconductor availability issues will continue to affect the group’s business in 2021, according to GM officials. Production will have to be cut at factories in the United States, Canada, Mexico, and South Korea. GM is challenged to maintain production volumes for its most profitable models: full-size crossovers, pickups, and the sporty Chevrolet Corvette.
The restrictions are expected to affect the production of the Chevrolet Malibu sedan, Cadillac XT4 crossovers, Chevrolet Equinox and Trax, GMC Terrain, and Buick Encore. According to IHS Markit, in the first quarter, the global automotive industry will reduce production by 672 thousand cars precisely because of the shortage of semiconductor components, and the shortage problem will not be eliminated until the end of the third quarter of this year. According to AutoForecast Solutions, since the inception of the deficit, the losses have already amounted to 564 thousand cars, and in total, by the end of the year, they will reach 964 thousand copies. In monetary terms, lost profits can be measured in tens of billions of US dollars.
