GM, Ford halt some production as chip shortage worsens

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GM, Ford halt some production as chip shortage worsens
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The global shortage of computer chips is getting worse, forcing automakers to temporarily close factories including those that build popular pickup trucks.

. General Motors announced Thursday, Sept, 2, 2021 that it would pause production at seven North American plants during the next two weeks, including two that make the company’s top-selling Chevrolet Silverado pickup. General Motors announced Thursday that it would pause production at eight of its 15 North American assembly plants during the next two weeks, including two that make the company's top-selling Chevrolet Silverado pickup.

“It now appears to be accelerating in the wrong direction,” said Jeff Schuster, president of global vehicle forecasting for LMC Automotive, a consulting firm.has hit employees at chip factories in southeast Asia hard, forcing some plants to close. That's worsened a chip shortage that was starting to improve earlier in the summer.

Consumers who need a new vehicle don't have many choices with dealer supplies so short, Schuster said. Some have left the market because they can't find anything that meets their needs. For others, “pricing is through the roof, so they can't afford it and aren't willing to spend what it's going to cost to get that vehicle.”

The GM and Ford cuts come on top of temporary plant closures announced previously by Toyota, Nissan and Stellantis, formerly Fiat Chrysler.

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