Indiana GM plant pausing production amid computer chip shortage

A GMC logo is displayed on the front grille of a vehicle
Associated Press/Mark Lennihan
General Motors is recalling more than 740,000 small SUVs in the U.S. because the headlight beams that can be too bright and cause glare for oncoming drivers. The recall announced Tuesday, March 22, 2022, comes after U.S. safety regulators turned down a request from the Detroit automaker to avoid the recall.

A computer chip shortage is forcing General Motors to pause production for two weeks at a pickup truck factory in Fort Wayne, Ind.

“Overall, we have seen better consistency in semiconductor supply through the first quarter compared to last year as a whole. This has translated into improvement in our production and deliveries during the first three months of the year,” General Motors said in a statement. 

“However, there is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward.”

For the weeks of April 4 and April 11, the General Motors plant in Fort Wayne will be shut down. The Associated Press noted over 4,000 workers work at the site, which had previously been operating three shifts each day to make two types of vehicle. 

General Motors noted that this would be the first time since August 2021 that full-size truck production would be paused in connection with the chip shortage.

The development comes amid ongoing supply chain issues, including a lingering computer chip shortage. The Commerce Department warned in a report in January that if the computer chip shortage was not properly addressed, it would lead manufacturing facilities to close.

The House in late January passed legislation that would provide $45 billion in grants and loans from the Commerce Department to strengthen domestic supply chains by supporting manufacturing facilities and a separate $52 billion to incentivize semiconductor chip production within the United States.

The Senate previously passed a version of the legislation in June. The chambers have not yet reached an agreement on a final version.

Tags chip shortage Commerce Department General Motors Indiana
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