GM is funneling chips

GM is funneling chips

General Motors will close the Grand River Assembly plant in Michigan where the Chevy Camaro is built until late June, a source revealed to local news outlet WLNS 6 last week.

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The assembly plant closed on May 10th due to a semiconductor chip shortage and will remain closed until at least June 28th. The Grand River Assembly plant builds the Chevy Camaro, as well as the Cadillac CT4 and CT5 sedans.

GM shut down the Lansing Grand River plant at the beginning of March due to the chip shortage, with the facility remaining offline for the rest of March and all of April. Production returned for a brief period between May 3rd and May 10th, but the facility has now gone back offline amid another shortage of chips.

In addition to the Lansing facility, GM has also temporarily idled its Fairfax Assembly plant in Kansas and CAMI Assembly plant in Ontario until late July. The Fairfax facility produces the Chevy Malibu and Cadillac XT4 crossover, while the CAMI plant builds the Chevy Equinox. As of May 3rd, GM had missed out on the production of roughly 79,600 vehicles in North America over the chip shortage, including 17,000 examples of the Chevy Equinox and a combined 24,100 examples of the Chevy Malibu and Cadillac XT4.

GM is funneling the majority of the chips it has access to toward its various pickup truck and SUV plants, as these vehicles are the bread-and-butter of its business. The Chevy Silverado and GMC Sierra are built at the GM Fort Wayne Assembly plant in Indiana and GM Silao Assembly plant in Mexico, while the heavy-duty Silverado HD and Sierra HD are produced at Flint Assembly in Michigan. The automaker’s line of full-size SUVs, such as the Chevy Tahoe and GMC Yukon, are built at Arlington Assembly in Texas.

Many experts predict the semiconductor shortage will persist to some degree throughout the year and could extend into early 2022. A variety of factors have led to the shortage, including increased demand and production setbacks related to factory fires and the COVID-19 pandemic.

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