Reduced Production at Korean GM Plant Due to Semiconductor Shortage

GM Halts Production and Begins Output Reduction at Four Global Plants

[Asia Economy New York=Correspondent Baek Jong-min] General Motors (GM), the largest automobile company in the United States, has begun production cuts at four plants worldwide, including the Bupyeong plant, due to a shortage of automotive semiconductors.

[Image source=Yonhap News]

According to major foreign media on the 3rd (local time), GM will completely halt vehicle production starting from the 8th at plants in Fairfax, Kansas, USA; Ingersoll, Ontario, Canada; and San Luis Potosi, Mexico.

The Bupyeong Plant 2 in Incheon plans to reduce production by half starting next week.

As a result of this measure, GM is expected to suspend assembly of about 10,000 vehicles next week alone. The affected models include Chevrolet Malibu, Cadillac XT4, Chevrolet Equinox and Trax, GMC Terrain, and Buick Encore.

Among these, the Chevrolet Trax and Buick Encore have been produced in Bupyeong and exported to the United States.

GM explained that there was no semiconductor demand until January. Additionally, they plan to focus on producing large pickup trucks and large SUVs, which have high demand in the US, for the time being. Detailed production cut information is expected to be announced in the earnings report scheduled for the 10th.

David Barnas, GM spokesperson, said, "The semiconductor shortage will affect GM's production in 2021," adding, "The semiconductor supply in the global automotive industry is very fluid."

In addition to GM, major global automakers such as Volkswagen, Ford, and Honda are also reducing vehicle production due to semiconductor shortages. This is because, after automakers reduced semiconductor orders during the COVID-19 pandemic last year, they have not been able to secure as many semiconductors as before despite the recovery in vehicle demand.

This content was produced with the assistance of AI translation services.