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Business & Finance

GM extends North America production cuts due to chip shortage

  • The move's impact has been baked into GM's prior forecast that the shortage could shave up to $2 billion off this year's profit.
  • The plant makes Chevrolet Camaro sports car and Cadillac CT4 and CT5 sedans. It has been out of action since March 15.
Published April 8, 2021

General Motors Co is extending production cuts at some of its North America factories due to a chip shortage that has roiled the global automotive industry, the US carmaker said on Thursday.

The move's impact has been baked into GM's prior forecast that the shortage could shave up to $2 billion off this year's profit.

GM's Lansing Grand River assembly in Michigan will extend its downtime through the week of April 26.

The plant makes Chevrolet Camaro sports car and Cadillac CT4 and CT5 sedans. It has been out of action since March 15.

GM's Spring Hill assembly in Tennessee will take downtime, starting the week of April 12 for two weeks. The plant makes the Cadillac XT5 compact sport utility vehicle, and Cadillac XT6 and GMC Acadia mid-size SUVs.

The company said it has not taken downtime or reduced shifts at any of its more profitable full-size truck or full-size SUV plants due to the shortage.

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