General Motors forced to reduce production in the U.S. and S. Korea due to chip shortage

General Motors announced this week that it will be reducing its production at four factories. The American automaker was forced to do this as chips needed to complete a vehicle has run out already.

GM reveals the suspension of productions in 4 plants

Supply for the automotive chips is so low that it is impossible for the production to continue. GM is suspending the manufacturing activities in three of its plants in North America and one in South Korea.

“We are currently assessing the overall impact, but our focus is to keep producing our most in-demand products – including full-size trucks and SUVs and Corvettes – for our customers, GM said in a statement.

The company listed its plants in Fairfax (Kansas), CAMI (Ingersoll, Ontario), and San Luis Potosi (Mexico) as the affected ones. In addition, the Bupyeong 2 assembly plant in S. Korea will also start operating at 50% capacity, only tarting on Feb. 8.

General Motors blamed the unavailability of parts as the main reason for the temporary halt. It is planning to give updates every week to inform workers if the parts are ready and work can resume.

“Our intent is to make up as much production lost at these plants as possible,” GM added. “Importantly, this issue will not impact our commitment to an all-electric future.”

The shortage of automotive chips

General Motors is the latest car manufacturer to have made announcements about the temporary halt in the production of vehicles. Previously, Ford already closed some of its plants due to the lack of chips. Nissan, Volkswagen, and Fiat-Chrysler have also either stopped or lessened their productions as well.

In other words, the chip shortage is already a global problem that most carmakers and tech companies are facing. The disruption or works due to this issue has already hurt many major companies.

It is hoped that the leading chipmakers will be able to boost the supply soon as they return to the business after being hindered by the pandemic. Currently, Taiwan’s TSMC agreed to fill the shortage and end the global shortage.