BYND Stock – General Motors Announces More Shut Downs Due To Chip Shortage
(RTTNews) – Auto giant General Motors (GM), have been forced to further cut production at six North American factories as the global shortage of semiconductors continue to impact auto makers worldwide.
In recent weeks, several auto companies have announced temporary shutdown of factories because of shortage of chips to finish building vehicles. Semiconductors chips are used in the infotainment, power steering and braking systems of a vehicle. The problem was further worsened after the blockage of the Suez Canal delayed shipments of chips.
According to CNBC, GM will shutdown its Spring Hill, Tennessee; Ramos Arizpe, Mexico; Ingersoll, Ontario; Fairfax, Kansas; and Lansing, Michigan factories. The temporary plant shut down range from a week or two to several additional weeks for plants that have already been idled due to the parts disruption.
GM expects the cost of the shutdowns to negatively impact its operating profit by $1.5 billion to $2 billion this year.
“We continue to work closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impact on GM,” GM said in an statement. “Our intent is to make up as much production lost at these plants as possible.”
In addition to GM, Ford, Nissan, Stellantis, Volkswagen and Honda all are facing similar situation.
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