GM to Cut Production at Three North American Plants Until Mid-March Due to Car Semiconductor Shortage

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] American automaker General Motors (GM) has decided to extend production cuts at three North American plants due to a shortage of automotive semiconductors until mid-next month.

According to CNBC on the 9th (local time), the three plants where GM decided to cut production until mid-March are Fairfax in Kansas, USA; Ingersoll in Ontario, Canada; and San Luis Potos? in Mexico.

The models affected by the extended production cuts include Chevrolet Malibu, Cadillac XT4, Chevrolet Equinox, and GMC Terrain.

Earlier, GM announced that it would completely halt vehicle production at these three plants this week and reduce production by half at its Bupyeong Plant 2 in South Korea.

The report on this day did not mention Bupyeong Plant 2 separately but stated that besides the three plants extending production cuts, GM would partially operate its plants in Wentzville, Missouri, USA, and Ramos Arizpe, Mexico.

David Barnas, GM spokesperson, told major foreign media, "The semiconductor supply is an issue faced by the entire automotive industry," adding, "GM will utilize all available semiconductors to produce and ship the most popular and in-demand products."

Due to the shortage of automotive semiconductors, not only GM but also major automakers such as Toyota, Volkswagen, Ford, Renault, Subaru, Nissan, Honda, and Mazda are experiencing production disruptions.

Ford also stated on the same day, "In limited cases, vehicles that have not yet completed assembly are simply being held," without specifying the affected models.

Earlier, Ford announced that vehicle production in the first quarter of this year is expected to decrease by 10-20%.

Honda and Nissan revealed on the same day that vehicle sales for this fiscal year are expected to decline by 250,000 units. Stellantis suspended operations at its Windsor plant in Canada for three weeks until the end of this month.

The automotive industry's semiconductor shortage stems from semiconductor manufacturers reducing automotive semiconductor production and focusing on IT products such as PCs and smartphones after vehicle demand declined due to the COVID-19 pandemic last year.

As the situation worsened, governments and related industries worldwide have urged major semiconductor companies to increase production, but it is expected to take several months before sufficient supply is secured.

The Information Technology Industry Council (ITIC) in the United States sent a letter to President Joe Biden on this day, urging him to take responsive measures such as substantial financial support to secure an adequate quantity of semiconductors.

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