GM extends three North American plant shutdowns due to chip shortage

General Motors (GM) is extending shutdowns for three of its North American plants due to a global shortage of semiconductors, or chips, that has directly impacted the auto industry.

The company announced that it was extending downtime at its facility in San Luis Potosi, Mexico, through the end of March. It will also extend downtime at its plants in Fairfax, Kan., and its CAMI facility in Ontario, Canada, through at least mid-April.

GM also said that its Gravatai plant in Brazil will take downtime in April and May.

“We continue to work closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM,” the company said in a statement.

GM announced in early February that the North American plants would begin taking downtime beginning Feb. 8 due to the semiconductor shortage. At the time, the company said it wanted to focus on producing its most in-demand products, including full-size trucks and SUV.

The company later announced that the downtimes at the plants would be extended through mid-March.

The closure comes as the semiconductor shortage is expected to heavily impact the automotive industry. Citing consulting firm AlixPartners, CNBC reported that the chip shortage would cut $60.6 billion in revenue from the global automotive industry.

President Biden signed an executive order last Wednesday directing his administration to review supply chains of critical products, including the semiconductors.

Semiconductors are important for components of vehicles like infotainment systems, power steering and brakes, according to CNBC. 

Tags General Motors GM Joe Biden plant closures semiconductor shortage Semiconductors

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