GM extends three plant shutdowns and adds a fourth due to the continuing shortage of semiconductor chips

General Motors is extending downtime at three North American factories that began in February until at least mid-April, as it prioritizes the production of its pickups and SUVs during the semiconductor shortages that affect the automotive industry.

The facilities include Fairfax, Kan, an assembly plant that builds the Chevrolet Malibu and Cadillac XT4 and two facilities in Canada and Mexico that produce the Chevrolet Equinox, Chevrolet Trax and GMC Terrain SUVs.

The automaker will also stop production in April and May at the Gravataí plant in Brazil, which manufactures vehicles for the local market.

GM said it still does not need to reduce production at any of the factories that build its highly profitable and in-demand trucks and that the possibility of extended production cuts has been taken into account in its 2021 forecast discussed in the February earnings statement.

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GM did not say how much volume it expects to lose during closings, but AutoForecast Solutions estimates the number to be 216,000 vehicles. GM said it would aim to make up for any losses in the second half of 2021 if the chip supply allows.

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