The global chip shortage continues, and it's affecting production not at just one carmaker but at several major auto companies around the world. Two of the biggest carmakers in the United States – General Motors and Ford – are feeling the heat, forcing them to mitigate the effect of the shortage by idling and cutting production, according to reports from the Detroit Free Press.
GM Idles 3 Plants, To Run Korean Site On Half-Capacity
As per The Free Press, GM is idling:
- The Fairfax Assembly and Stamping Plant in Kansas City, Kansas (Chevrolet Malibu and Cadillac XT4)
- CAMI in Ingersoll, Ontario Canada (Chevrolet Equinox)
- San Luis Potosí pant in Mexico (Chevrolet Equinox and Trax and GMC Terrain).
Meanwhile, GM's Bupyeong 2 assembly plant in South Korea (Chevrolet Malibu, Trax and Buick Encore) will operate at half capacity starting the week of Feb. 8.
GM, however, is prioritizing production of its more profitable products, namely pickup trucks and full-sized SUVs. Its pickup truck production plants (Flint Assembly Plant, Fort Wayne Assembly Plant, Wentzville Assembly) and its full-size SUV facility (Arlington Assembly) will still run on three shifts and weekend overtime, GM spokesman David Barnas told the Free Press.
Ford Cuts Production Shifts For F-150
On the other hand, Ford is planning to further trim production of the F-150 pickup starting next week, affecting shifts at its Dearborn Truck Plant in Michigan and the Kansas City Assembly Plant in Claycomo, Missouri. The shift drops follow previous cuts at the two plants and at the Chicago Assembly Plant and the Louisville Assembly Plant.
As planned, the Dearborn Truck Plant will operate with a single shift instead of three on the F-150. The Kansas City Assembly, meanwhile, will run on just two shifts instead of three on the pickup truck. Both plants will resume its three-shift F-150 production schedule on the week of Feb. 15. Production shifts for the Transit van at Kansas City Assembly will remain as is.
Huge Surge On Chip Demand Caused Unstable Supply
There has been an global shortage for semiconductor chips, no thanks to a huge surge in demand brought about by COVID-19 pandemic and increased purchase of laptop computers. Because of the highly fluid situation regarding these semiconductor chips, there have been calls for the return of chip production to the US.
Source: Detroit Free Press