For the Want of a Chip

GM announces more downtime at assembly plants

The GM Fairfax Assembly & Stamping plant produces the Chevy Malibu and Cadillac XT4. CAMI produces the Chevy Equinox. At the San Luis Potosi plant it’s the Equinox, Chevy Trax and GMC Terrain.

Today all three of these plants, which have been on downtime shifts, have had their downtime extended.

At San Luis Potosi through the end of March. At the other two assembly plants: “to at least mid-April.”

Why?

The shortage of semiconductors.

GM is using its available chips for its “most popular and in-demand products”—like, not surprisingly, full-size trucks and SUVs.

This is completely understandable. Well, the selection of what to build is, at least.

GM has some of the best people in any industry when it comes to dealing with suppliers. While the pandemic certainly caused a shift in priorities not only when it came to vehicle purchases but also the demand for silicon-based products for those suddenly working and learning from home, it seems as though when it comes to traditional sourced components GM (and other OEMs) are masterful.

But it seems that when it come to silicon and having to compete with consumer electronics manufacturers it is an entirely new challenge.–gsv

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