GM extends vehicle production cuts due to semiconductor chip shortage
General Motors Co stated that on Wednesday it was further increasing some production cuts at three North American plants and are about to add fourth to the list, of industry affected by the semiconductor chip shortage.The extended cuts did not bring any changes in GMâ€™s forecast last month that the shortage might have been cut off to $2 billion from this yearâ€™s pay. Chip supplies should return to normal rates by the second half of the year and the company is confident that the profit hit would not worsen as per the Chief Financial Officer Paul Jacobson.The U.S. automaker did not reveal any of the impact on volumes but instead stated it can recover maximum of the lost output as possible.â€œGM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including full-size trucks and SUVs,â€ GM spokesman David Barnas stated. â€œWe contemplated this downtime when we discussed our outlook for 2021,â€ he added.The chip shortage, which held the plants operations for two months due to the pandemic last year, compete against the spreading of consumer electronics industry for chip furnishing.Consumers had stocked up laptops, electronic gadgets and other electronic products during the Covid, this lead to tight chip distribution. They also bought more automobiles than industry officials expectations.It would extend delay in Fairfax, Kansas, and Ingersoll, Ontario, to the least by mid-April, and in San Luis Potosi, Mexico, via the end of March. Following that it will idle its Gravatai plant in Sao Paulo, Brazil, in April and May.