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GM to significantly cut North American vehicle production due to chip shortage

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Trucks come off the assembly line at GM’s Chevrolet Silverado and GMC Sierra pickup truck plant in Fort Wayne, Indiana, July 25, 2018.

John Gress | Reuters

DETROIT – General Motors is once again significantly cutting production at its North American plants due to the semiconductor chip shortage, signaling the global parts problem remains a serious issue for the automotive industry.

The automaker said Thursday that it’s adding or extending downtimes at eight plants in the U.S., Canada and Mexico. Most of the new cuts are for two weeks, while production of its Silverado 1500 and Sierra 1500 full-size pickups in Indiana and Mexico is expected to resume after a week of downtime on Sept. 13.

Other vehicles impacted by the new production cuts range from its Chevrolet and GMC midsize pickups and vans in Missouri to the Chevrolet Trailblazer in Mexico and crossover production across North America.

“Although the situation remains complex and very fluid, we remain confident in our team’s ability to continue finding creative solutions to minimize the impact on our highest-demand and capacity-constrained vehicles,” the company said in a statement Thursday.

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