General Motors has decided to extend the production downtime at three of its plants in North America due to the ongoing semiconductor chip shortage. The carmaker plans to also reduce production at its Brazil plant next month due to this issue.
GM previously announced that it would reduce output at its three North American plants until mid-March. The company stated in a news release on Mar 3 that its Mexican plant, San Luis Potosi, will extend its downtime to the end of March. On the other hand, the Fairfax plant in Kansas and the CAMI plant in Ingersoll, Canada will extend their reduced shifts to mid-April.
GM’s Gravatai plant in Brazil will also undergo some stoppage in April and May. The company has previously stated that it intends to make up for the lost output in H2 2021. However, GM said that this issue may cost around $2bn this year. It will continue to prioritize the output of full-size SUVs and trucks until then.