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GM car prices surge as more plants close during the chip shortage

April 8, 2021. Summarized by summa-bot.

Compression ratio: 69.1%. 2 min read.

LANSING, MI - FEBRUARY 21: A General Motors worker is shown on the assembly line at the General Motors Lansing Delta Township Assembly Plant on February 21, 2020 in Lansing, Michigan. The plant, which employs over 2,500 workers, is home to the Chevrolet Traverse and Buick Enclave. Today at the plant the three millionth vehicle made at the plant, a Chevrolet Traverse Redline Edition rolled off the line. (Photo by Bill Pugliano/Getty Images)

General Motors is temporarily shutting down more auto plants, leading to tight inventories at dealerships and higher prices for customers. The global chip shortage is to blame.

New York (CNN Business)General Motors is temporarily shutting down more auto plants, leading to tight inventories at dealerships and higher prices for customers.

The company announced it would shut production at two US plants — in Spring Hill, Tennessee, and Lansing Delta Township, Michigan, in the coming weeks.

GM also extended shutdowns at the Fairfax Assembly plant in Kansas City, Kansas, and the CAMI plant in Ingersoll, Ontario, which have both been idled since February 8.

And it will continue the shutdown at the Lansing Grand River assembly plant, which has been down since March 15.

In addition, GM is halting Chevrolet Blazer production at the Ramos Assembly plant in Ramos, Mexico, during the week of April 19, although that plant will continue to build the Chevy Equinox.

GM is bringing some plants back online as it tries to avoid shortages of certain vehicles in its dealer inventories.

The assembly plant in Wentzville, Ohio, which makes midsize pickup trucks, will resume production this coming Monday.

And this past Monday, the plant in San Luis Potosi, Mexico, restarted production of Equinox and GMC Terrain.

GM (GM) reported last week that its inventory of vehicles at the end of March was down 18% from the end of 2020.

The chip shortage has become a growing problem for major automakers around the world, with plants in North America, Asia and Europe all temporarily shutting down production.

Automakers cut back computer chip orders early last year when the pandemic caused temporary plant closures and slammed the brakes on auto sales and production.

GM has already warned that full-year income could be cut by between $1. 5 billion to $2 billion because of the chip shortage.

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