General Motors will idle production at the Spring Hill Assembly facility in Tennessee and Lansing Delta Township facility in Michigan as a result of a parts shortage.
According to a recent report from Detroit Free Press, General Motors will shut down production at the Spring Hill Assembly facility on Monday, April 12th, with plans to idle the facility for two weeks. The Spring Hill Assembly facility produces several GM crossovers, including the GMC Acadia, the Cadillac XT5, and the Cadillac XT6.
Additionally, Detroit Free Press reports that GM’s Lansing Delta Township facility will be idled on Monday, April 19th, with plans to halt production for one week. The Lansing Delta Township facility builds the Buick Enclave and Chevy Traverse.
GM will also halt production of the Chevy Blazer for one week at its Ramos Arizpe Assembly facility in Mexico, starting April 19th. The Ramos Arizpe facility will continue to produce the Chevy Equinox during that time.
Elsewhere, GM is extending production cuts at various other facilities, both in the U.S. and abroad. The production idle extensions include GM’s Fairfax Assembly and Stamping in Kansas, the Lansing Grand River Plant in Michigan, GM’s CAMI Ingersoll Plant in Ontario, Canada, GM’s Gravatai Plant in Brazil, and the GM Bupyeoung plant in South Korea.
The production cuts stem primarily from an industry-wide shortage in semiconductor chips, which GM estimates will result in $2 billion in lost earnings this year. Some estimates put the production losses at 60,000 vehicles throughout North America.
The shortage has also affected GM’s rivals, including Ford and Stellantis, both of which have idled production facilities throughout North America this year.
Although General Motors has cut production for some of its models, the automaker has stated that the semi-conductor shortage will not affect production of its highly profitable full-size truck and SUV models. That said, the recent severe winter weather that swept through the U.S. in February did force production cuts at GM’s Arlington Assembly plant in Texas and the GM Fort Wayne Assembly facility in Indiana.
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Comments
What are dealer inventories looking like now? And, is this shortage affecting all global automakers or just US automakers?
Inventory is low, this is a global problem, nearly all automakers have been affected. GM guided that they expected these parts shortage in January, and said they expect a 2021 earnings impact of $1.5 to $2.5B in 2021.
I’m glad it won’t affect electric vehicles. Time for GM to stop building gas mobiles entirely.
For the Enclave & Traverse that my plant builds, there is less than a 30 day supply. A 60 day supply is the lowest GM prefers. The dealers are tearing their hair out because they can’t get enough of these vehicles.
Glad it won’t affect electric vehicle production. It’s about time GM stopped all production of ICE vehicles.
How ironic; GM, not too long ago, spun off most of it’s parts manufacturing in pursuit of higher profits, and now an outside sourced parts shortage is causing profit loss.
Meanwhile, Toyota is spending billions developing gasoline engines for electric cars.
Dude… All Electric vehicles use chips as well. Please think about it.
they need to invest in USA CHIP production!!!
Did not see any mention of Corvette line being shut down.
This afternoon we got notice that the Lansing Delta Township plant will shut down a week earlier than planned. We’re now shutting down for at least one week starting April 12, rather than the previously announced April 19 date.
Does any one know how the Chevrolet Equinox is selling im a Gm Retiree Rochester NY.Wishing everyone at GM Cami Assembly the very best.GodBless Rick Clark