GM hits truck production target, but plans to idle plants amid chip shortage

GM hits truck production target, but plans to idle plants amid chip shortage
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General Motors said Friday that even though it's hitting production targets, several plants will need to be idled due to a shortage of semiconductor chips.

GM confirmed to The Hill on Friday that it plans to hit pause on four of its plants in North America for a two-week period starting Monday.

The Detroit Free Press first reported the move on Thursday, citing an internal notice to workers.

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The company plans to idle its Lansing Delta Township facility in Michigan, which makes the Buick Enclave and Chevrolet Traverse midsize SUV, as well as its Spring Hill Assembly plant in Tennessee that builds the Cadillac XT5, XT6 and GMC Acadia midsize SUV.

GM also plans to idle two facilities in Mexico: the San Luis Potosi facility, which makes the Chevrolet Equinox and GMC Terrain midsize SUV; and Ramos Assembly, which produces the Equinox and GMC Blazer midsize SUV.

A separate temporary closure has been extended at the CAMI Plant in Ontario, where the Equinox is built. The plant was previously scheduled to pause production during the weeks of July 19 and July 26, but the facility will now be closed through the week of Aug. 16.

The closures come as the auto industry grapples with a massive chip shortage, forcing numerous auto makers to halt production. The chip shortage is expected to cost the auto industry $110 billion in revenue in 2021, CNBC reported in May.

David Barnas, a spokesperson for GM, told The Hill that the company was able to hit its target for shipments of Chevrolet Colorado and GMC Canyon midsize pickups from mid-May through July 14. The trucks were built at the Wentzville Assembly in Missouri.

“The global semiconductor shortage remains complex and very fluid,” Barnas said.

“GM’s global purchasing and supply chain, engineering and manufacturing teams continue to find creative solutions and make strides working with the supply base to maximize production of our highest-demand and capacity-constrained vehicles, including full-size trucks and SUVs for our customers,” he added.