Chip shortage forces GM to extend factory closures

General Motors Co. will reduce production at most North American assembly plants this month because of the ongoing semiconductor chip shortage, hitting its profitable truck and sport utility vehicles, it said on Thursday.

The largest U.S. automaker will halt production next week at its Fort Wayne plant in Indiana and its Silao plant in Mexico, both of which build pickup trucks. In total, GM is cutting production at eight North American assembly plants in September.

The company’s CAMI plant in Ingersoll, Ont., — which makes the Equinox SUV — is included in the moves. “CAMI Assembly will extend downtime to include the weeks of Sept. 20 and Sept. 27, 2021,” the company told employees in a memo obtained by CBC News.

The industrywide chip shortage is causing massive auto production cuts around the globe.

Earlier this week, Ford Motor Co. said it will also cut truck production next week because of the chip shortage, while Toyota Motor Corp. said last month it will slash global production for September by 40 per cent from its previous plan.

GM will halt production at its Wentzville, Mo., plant that builds mid-size trucks and full-size vans for two weeks starting Sept. 6. GM will also halt production at the San Luis Potosi assembly plant in Mexico for two additional weeks. The company builds its Equinox SUV at both plants.

The automaker is also idling production for two additional weeks at its Lansing Delta Township plant that builds the Chevrolet Traverse and the Buick Enclave.

GM will cut two weeks of production in September at its plant in Spring Hill, Tenn., that builds the GMC Acadia, Cadillac XT5 and Cadillac XT6, while its Ramos, Mexico, plant will take two additional weeks of downtime for Blazer production. Equinox production will be down through the week of Sept. 27.

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