General Motors vehicle sales and production is being hit harder by the global chip shortage during the second half of the year than it previously predicted, it finance chief said on Friday.​

The shortage will cut GM’s wholesale deliveries by about 200,000 vehicles in North America during the second half of the year compared with the 1.1 million it delivered in the first half of the year, CFO Paul Jackson said during an RBC Capital Markets conference. That reduction is twice the 100,000 units that was expected when GM reports second quarter earnings in August.

“We’re still going to deliver a year that’s higher than what we originally thought coming into January,” Jacobson said, adding much of the impact will occur in the third quarter.

Ford Motor has said and confirmed that both F-150 truck and Transit van production will be down at its Kansas City Assembly Plant in Missouri, as both production and support employees for both vehicles lines will be temporarily laid off beginning September 13, with an expected return date of September 20. The best-selling, profit driving pickup truck is down to one shift at Ford’s Dearborn Truck Plant. And Ford’s Kentucky Truck Plant, which builds Super Duty trucks, the Ford Expedition and the Lincoln Navigator, is operating on two shifts instead of three for the next two weeks.

General Motors and Ford Motor are not the only car manufacturers having these problems. Daimler, Honda, Nissan, Toyota, VW and others vehicle manufacturers are having the same problem with the worldwide chip shortages.

The resolution to the problem may be well into 2022 according to some predictions, as Bloomberg reported on Wednesday that he Malaysian semiconductor firm Unisem has shut some plants for seven days after three employees died recently from COVID-19.

The company, which is a major chip assembler and tester, will close Ipoh plants in the state of Perak until September 15 to help stop the spread of the disease and then will limit the number of employees allowed into the facilities once they reopen, the outlet reported.

0 0 votes
Article Rating

You Might Like

Leave a Reply

1 Comment
Inline Feedbacks
View all comments
1 year ago

How about chucking the chips, and making cars without them like we did all these years up until just recently. Who wants anything from China anyways?