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GM to temp. halt most full size pickup due to chip

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  • GM to temp. halt most full size pickup due to chip

    Weakness in semiconductor supply chains is affecting everything from automobile to consumer electronics manufacturing. (March 5) Video Elephant

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    General Motors has done everything it can to protect production of its in-demand and highly profitable full-size pickups from the ongoing global shortage of semiconductor chips used in many car parts.

    But now GM will be pausing most of its pickup production in North America.

    A Chevrolet Silverado full-size pickup truck is ready to roll off the assembly line on June 12, 2019, at the GM Flint Assembly Plant in Flint, Michigan. The company will run the plant on one shift for a week starting July 26, 2021 due to the shortage of semiconductor chip parts. (Photo: Jeffrey Sauger)

    In a notice to union members obtained by the Free Press, and confirmed by GM, the automaker will make the following production adjustments starting Monday:
    • Flint Assembly, where GM builds the full-size heavy duty Chevrolet Silverado and GMC Sierra pickups, will operate on one shift for the week and is expected to resume regular production on Aug. 2.
    • Fort Wayne Assembly in Indiana, where GM builds the full-size light-duty pickups, will be idled for the week, expected to resume regular production on Aug. 2.
    • Silao Assembly in Mexico, which also builds full-size light-duty pickups, will idle for the week and is expected to resume regular production on Aug. 2.

    "These most recent scheduling adjustments are being driven by temporary parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-19-related restrictions," GM spokesman David Barnas said in a statement. "We expect it to be a near-term issue."

    The news comes less than seven days after GM said it would have to idle four of its North American plants that build midsize SUVs — including Lansing Delta Township Assembly — starting July 19 and running for two weeks due to the chips shortage.

    Additionally, at CAMI Assembly in Ontario, where GM builds the Equinox, GM will extend downtime to Aug. 16. CAMI was supposed to resume production next week following its scheduled two-week summer shutdown.

    Since early this year the auto industry has had to either idle assembly plants or build vehicles shy of all the parts and then park them to await the arrival of chips. The result is comparatively empty dealer lots and a scramble to get as many vehicles built and shipped as possible when parts do arrive.

    The chips, made mostly in Taiwan, are used in a variety of electronics. They are in tight supply after demand for them rose during the COVID-19 pandemic as people bought laptops and other personal electronics that also use them. The chips go into a variety of car parts.

    More: Everything you need to know about the chip shortage that's plaguing automakers

    GM is running what the industry has called a build-shy strategy, where it builds as much of its vehicles as it can, less the parts that require the chips. It has been parking tens of thousands of vehicles all over the country to await final production once the chip parts become available.

    Parked Chevy Camaros and Cadillac CT4s and CT5s in a parking lot near the GM Lansing Grand River Assembly on May 14, 2021, in Lansing. (Photo: Antranik Tavitian, Detroit Free Press)

    Late last week, a worker at Lansing Delta Township plant told the Free Press there are about 15,000 vehicles parked, awaiting chip parts to complete production and ship to dealers. The worker asked to not be identified because he is not authorized to speak to the news media.

    Barnas said the downtime at the pickup and SUV plants will "provide us with the opportunity to complete unfinished vehicles at the impacted assembly plants and ship those units to dealers to help meet the strong customer demand for our products.”

    To keep vehicles flowing to dealers, GM also has been building some vehicles without certain chip parts.

    In March, GM said it would build certain 2021 light-duty full-size pickups without a fuel management module until the end of the model year in late summer.

    In June, GM started building certain full-size SUVs and pickups without the Automatic Stop/Start, the feature that turns off the engine when a driver stops at an intersection and then automatically restarts it when the driver steps on the throttle.

    Most recently, GM said it will make some SUVs without a wireless phone charging feature.

    “The global semiconductor shortage remains complex and very fluid, but GM’s global purchasing and supply chain, engineering and manufacturing teams continue to find creative solutions and make strides working with the supply base to minimize the impact to our highest-demand and capacity-constrained vehicles, including full-size trucks and SUVs for our customers," Barnas said.

    More: Stellantis to cut production at Ram 1500 plant because of chip shortage

    More: Ford cuts production at 8 factories amid semiconductor chip shortage, alerts UAW

    Contact Jamie L. LaReau: 313-222-2149 or [email protected]. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.

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    A thought if I might ...

  • #2
    That is sad for the workers and for its customers too.
    GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

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    • #3
      unbelievable as this continues..

      who knew Taiwan was so vital to vehicle production around the globe.

      Hopefully Taiwan will never be destroyed or attacked.

      is that the message? How does china have computer chips from taiwan?
      Last edited by JB; 07-21-2021, 10:02 PM.

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      • #4
        Will this affect Corvette?

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        • #5
          I hope all or who has to is paying attention, which I am sure they are, to what we can no longer depend on others for, Chips is top of the list., and basic pharmeceuricals.

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          • #6
            Originally posted by pageda View Post
            Will this affect Corvette?
            As of today no, but that doesn’t mean things won’t change tomorrow….
            A thought if I might ...

            Comment

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