GM To Cut North American Production Due To Chip Shortage

(RTTNews) - Auto giant General Motors Co. (GM) Thursday said it will temporarily halt its North American vehicle production as global chip shortage worsens.

According to Detroit Free Press, GM has said that its Arlington Assembly in Texas, where it makes its full-size SUVs, will run regular production next week, along with Flint Assembly, Bowling Green Assembly in Kentucky, and a portion of Lansing Grand River Assembly. But all other assembly plants in North America will idle starting Monday for two weeks.

"All the announcements we made today are related to the chips shortage, the only plant down that's not related to that, is Orion Assembly," said GM spokesman Dan Flores, referring to that plant's shutdown over Chevy Bolt recall issues.

"Although the situation remains complex and very fluid, we remain confident in our team's ability to continue finding creative solutions to minimize the impact on our highest-demand and capacity-constrained vehicles," the company added in a statement Thursday.

The shortage of chipsets, which started during the first half of the year, has worsened in the past few months and has severely impacted production of electric vehicles, mobile phones, and computers. Moving ahead, experts expect the problem to continue well into 2022.