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General Motors pauses production on full-size pickups in midst of chip shortage

Explainer Worsening Chip Shortage
Posted at 6:14 PM, Jul 22, 2021
and last updated 2021-07-22 21:14:14-04

General Motors is pressing the pause button on the production of most of its full-size pickup trucks in North America.

The automotive company had tried to keep production of the in-demand and profitable pickups going during the global shortage of semiconductor chips, but now it is having to cut back.

Reports indicate the company will be pausing production at facilities in Flint, Michigan; Fort Wayne, Indiana; and Silao, Mexico for at least a week.

"These most recent scheduling adjustments are being driven by temporary parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-19-related restrictions," GM spokesman David Barnas said in a statement.

The Detroit Free Press reports the unions were told regular production is expected to pick back up the week of Aug. 2.

Four GM plants that build SUVs were idled earlier this month because of the ongoing chip shortage.

The semiconductor chips, mostly made in Taiwan, are used in a variety of electronics and go into a variety of car parts. The chips were in demand during the pandemic as people bought laptops and personal electronics, there were also pandemic-related supply chain changes and production issues.

Some automakers have been building cars and letting them sit, waiting for the chips to be installed.