A General Motors employee works on December 13, 2019 at the automaker’s plant in Wentzville, Missouri.
Melissa Vaeth’s photo for General Motors
General Motors will suspend production of its medium-sized pickup trucks due to the continuing global shortage of semiconductor chips. It is the last stoppage, since the automaker prioritizes the production of its largest and most profitable pickups and SUVs.
Downtime at the Missouri plant will begin on Monday and last until April 12, according to a message to employees on Wednesday from the local United Auto Workers union. It produces GMC Canyon and Chevrolet Colorado pickups. The production of vans at the facility will not be affected, according to GM.
GM will also advance the plant’s scheduled downtime by two weeks, from May 24 to July 19, to “allow more time to build the product” during the second half of the year, the union said. GM spokesman David Barnas confirmed the plans.
In addition to the pickups, Barnas said GM will extend downtime at a Michigan auto plant by two weeks, until mid-April. GM has temporarily closed or cut production at several factories that produce cars or crossovers to prioritize the production of its pickups and SUVs.
“GM continues to take advantage of all available semiconductors to build and ship our most popular and in-demand products, including large trucks and SUVs to our customers,” he said in an e-mailed statement. “We have not reduced downtime or reduced shifts at any of our large truck factories due to shortages.”
GM’s factories in Kansas and Ingersoll, Ontario, which closed in early February because of a chip shortage, are expected to remain closed until at least mid-April. GM’s factories in Brazil and South Korea were also affected by the shortage. A plant in Mexico is expected to reopen on April 5, after being closed since February 8.
GM’s actions are the most recent, as the automotive industry tries to deal with the global chip shortage after suppliers directed the chips away from the automotive industry during the closure of rolling mills last spring due to Covid. Consulting firm AlixPartners estimates that the chip shortage will cut $ 60.6 billion in revenue from the global automotive industry this year.
Semiconductor chips are extremely important components of new vehicles for infotainment systems, power steering and brakes, among other systems. The parts can contain various sizes and different types of chips.
GM expects the chip shortage to cut $ 1.5 billion to $ 2.5 billion from its free cash flow in 2021.