Microchip Shortage Is Hitting General Motors Hard As Company Extends Downtime At Several Assemblies

The global shortage of microchips is affecting the operations of numerous vehicle manufacturers, forcing them to make drastic changes to their manufacturing schedules.

General Motors Extends Downtime At Crossover Assemblies

Detroit-based General Motors has announced that it has extended the downtime at several crossover assemblies across the United States. The global shortage of microchips is the major reason why the automobile manufacturer is taking such drastic action.

In a statement yesterday, the automaker said, “These most recent scheduling adjustments are being driven by the continued parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-related restrictions.”

General Motors added that while the situation remains complex and fluid at the moment, it is prioritizing full-size truck production due to their high demand. The automaker said seven of its plants in North America would be fully operational next week. They are; the full-size SUV plant in Arlington, Texas; the GMC Acadia, Cadillac XT5 and XT6 plant in Spring Hill, Tenn; the full-size pickup plants in Flint, Mich., Fort Wayne, Ind., and Silao, Mexico; the Chevrolet Corvette plant in Bowling Green, Ky.; and Fairfax Assembly in Kansas.

Automobile manufacturers would fall short of 9.4 million vehicles this year in terms of production due to the worldwide shortage of microchips. At the moment, they are down by 8.2 million, with North America accounting for 2.6 million so far.

General Motors Is Having Troubles With Its Electric Cars

General Motors has been experiencing certain troubles with its electric vehicle, the Chevrolet Bolt. The company extended the shutdown of its assembly plant that manufactures the Bolt until mid-October due to another safety notice related to the car.

Earlier this week, General Motors had asked Bolt owners to park at least 50 feet from other vehicles inside parking garages because the electric cars could catch fire. The company also said users should not leave their vehicle charging unattended, even if they are using a vehicle charging station in a parking deck.

GM stock chart. Source: FXEMPIRE

GM stock chart. Source: FXEMPIRE

The shares of General Motors are up by 0.60% at Friday’s pre-trading session despite the negative news from the company over the past 48 hours. GM is trading at $51.80 per coin and has delivered excellently this year.

GM’s stock price is up by more than 20% year-to-date. It started trading at $41 per share at the beginning of the year, and it is now trading above $51 per share.

This article was originally posted on FX Empire