General Motors will idle North American pickup truck production through the remainder of July. The production cuts are the result of the ongoing global microchip shortage.
According to a recent report from Reuters, three North American GM production facilities are affected by the production cuts, including Flint Assembly in Michigan, which produces the Chevy Silverado HD and GMC Sierra HD, Fort Wayne Assembly in Indiana, which produces the Chevy Silverado 1500 and GMC Sierra 1500, and Silao Assembly in Mexico, which builds the Chevy Silverado 1500, Cheyenne and GMC Sierra 1500.
The Flint Assembly plant will be down to one production shift for the week of July 26th, while Fort Wayne Assembly and Silao Assembly will both be idled next week.
The recent production cuts at these three North American General Motors production facilities are the latest in a series of production changes stemming from the global microchip shortage. At the outset of the shortage, GM was forced to cut production at four of its facilities in February, later extending production cuts at several other facilities. Further cuts were implemented in April and May, including at GM’s Lansing Grand River facility, Wentzville Assembly, Fairfax Assembly, and CAMI assembly in Canada.
To help mitigate the effects of the global microchip shortage, which has impacted every major automaker in the world, General Motors is reportedly stockpiling vehicles in an unfinished state as new chips are sourced for completion. This “build-shy” strategy is intended to keep production lines rolling as the automaker grapples with the ongoing shortage.
In addition, GM is producing a number of popular vehicles without certain features. For example, GM has elected to build select units of the 2021 Chevy Silverado 1500, 2021 GMC Sierra 1500, and its range of full-size SUVs without fuel-saving technologies like automatic engine stop-start.
General Motors is currently seeking to establish a long-term supply contract to mitigate the effects a possible future chip shortage.