General Motors is shutting down three plants and reducing production at a fourth one due to the global shortage of semiconductors.
The company said in a statement on Feb 3 that beginning the week of Feb 8, it will cut production in Fairfax, Kansas; CAMI Ingersoll, Ontario, Canada; and San Luis Potosi, Mexico, while its Bupyeong 2 assembly plant in Korea will operate at half capacity.
The semiconductor shortage will impact GM’s production in 2021, the US-based carmaker noted, adding that while it is still assessing the overall impact, the company will continue producing its most in-demand products including full-size trucks, SUVs, and Corvettes.
The automaker pointed out that its supply chain organization is working to find solutions for their suppliers’ semiconductor requirements to mitigate the impact on the company’s production.
In 2020, the company’s total sales tallied at 2.5 million units, with total deliveries falling by 12pc and retail deliveries down 6pc on an annual basis.