Line employees work on the chassis of full-size Common Motors pickup vehicles on the Flint Meeting plant on June 12, 2019 in Flint, Michigan.
JEFF KOWALSKY / AFP / Getty Pictures
Common Motors is slicing additional time manufacturing this weekend at two U.S. meeting vegetation that make its extremely worthwhile full-size pickups as a result of ongoing semiconductor chip scarcity impacting the worldwide automotive business.
The vegetation in Flint, Michigan, and Fort Wayne, Indiana, produce a mixture of the corporate’s full-size pickups, together with the Chevrolet Silverado and GMC Sierra 1500 fashions in addition to their bigger siblings.
That is the primary time the Detroit automaker has lower manufacturing shifts for its full-size pickups as a result of monthslong chip scarcity. GM has considerably lowered manufacturing at its automobile and crossover vegetation in North America to prioritize chips for the pickups in addition to the corporate’s full-size SUVs.
In whole, GM is eliminating three additional time shifts between the 2 vegetation on Saturday and Sunday.
“As we proceed to handle the semiconductor influence on our vegetation, we’re balancing components availability with our capability to run effectively for all the week,” GM stated in an emailed assertion.
GM additionally produces the 1500 variations of the Silverado and Sierra pickup at a plant in Mexico.
Along with the shift cuts, GM stated Friday it’s canceling scheduled downtime the weeks of June 28 and July 5 in any respect U.S. vegetation besides a midsize truck plant in Missouri. GM hopes manufacturing throughout these weeks, which is historically generally known as a summer time shutdown interval, will help in making up misplaced manufacturing from the primary half of the yr.
GM CEO Mary Barra and Ford CEO Jim Farley are anticipated to participate Monday in a digital CEO summit with the Biden administration to debate the worldwide semiconductor scarcity.
Semiconductors are key elements in automotive manufacturing and are utilized in infotainment, energy steering and braking techniques, amongst different issues. As a number of vegetation shuttered final yr as a consequence of Covid, suppliers directed semiconductors away from automakers to different industries, making a scarcity after shopper demand snapped again stronger than anticipated. The car components can comprise a number of sizes and various kinds of chips.
For months, GM and Ford have been prioritizing meeting of high-margin automobiles resembling full-size pickups by slicing manufacturing of vehicles and crossovers. The businesses are even partially constructing pickups to finish and ship at a later date.
GM expects the chip scarcity will scale back its working revenue by $1.5 billion to $2 billion this yr, whereas Ford stated the scenario might decrease its earnings by $1 billion to $2.5 billion in 2021.
Consulting agency AlixPartners estimates the chip scarcity will lower $60.6 billion in income from the worldwide automotive business this yr.