The General Motors Fairfax Assembly plant in Kansas City, Kansas, will be down until August 16th due to the ongoing global microchip shortage.
The General Motors Fairfax Assembly plant has been idle since February, once again due to the semi-conductor chip shortage. The facility was originally slated to remain offline until the first week of July, but now, that downtime has been extended until August 16th.
The current Fairfax Assembly facility opened in 1987, and employs roughly 2,260 employees.
The global microchip shortage has resulted in widespread production disruptions for the entirety of the automotive industry. It’s estimated that the shortage has forced General Motors to cut production of more than 278,000 units thus far.
In addition, GM has reduced feature availability for some models – for example, some models in the automaker’s full-size truck lines are no longer equipped with Active Fuel Management and Dynamic Fuel Management, a move intended to reduce the number of microchips required to build affected models.
GM predicts the shortage could eat into annual net earnings by as much as $2 billion.
What’s more, General Motors has adopted a “build-shy” strategy wherein popular models are built without critical components that require additional microchip supplies. The unfinished vehicles, numbering in the tens of thousands, are subsequently parked as new microchips were sourced. It was recently reported that some of these incomplete vehicles have been finalized with new chips and shipped to dealers.
General Motors is currently seeking a long-term supply contract to mitigate the affects of a potential microchip shortage in the future. General Motors also announced that it anticipates improved first-half financial results compared to those originally forecasted.