General Motors to shutter Ft Wayne truck plant due to chip shortage

Detroit, MI – General Motors has announced that it will be putting the shutters down for its pickup truck factory in Ft Wayne, IND, for two weeks next month as the company is facing a severe shortage of computer chips.

The Wayne plant will remain closed between Apr 4 and Apr 11. At present, it is running on three shifts per day, manufacturing Chevrolet Silverados and GMC Sierra light-duty pickups. Since the plant employs more than 4,000 blue-collar workers, it is a matter of concern.

General Motors reported that all of its North American assembly plants have at least one shift running since Nov 1, 2021. Throughout this global crisis, GM has routed most of its semiconductor purchases to pickup trucks and large SUV factories as they qualify for GM’s most profitable vehicles.

Despite the grim situation, the automaker is optimistic that it can tide over the chip crisis. The scenario was expected to improve, but probable shortages of rare earth metals caused by the Russia-Ukraine war is an added worry. Uncertainty and unpredictability loom large in the semiconductor supply base, but GM is actively working to come up with measures.

The computer chip shortage that has been irking the auto and other industries for a long time has its roots in the pandemic in early 2020. As U.S. auto manufacturers had to halt production and close their factories to check the spread of the virus, and some parts companies had to cancel orders for semiconductors, the chip deficiency crept in and now threatens production even for major auto giants like GM.

With the pandemic forcing people to stay indoors, there was a demand surge for gaming consoles and gadgets with a high dependency on computer chips. Since electronic goods demand skyrocketed, the chip makers shifted their production base to these goods, thus creating a shortage of weather-resistant automotive-grade chips once auto production resumed.

The severe onslaught of the second wave of the pandemic that hit Asian countries like Malaysia further worsened the problem as chips are finished in these countries.

Analysts expect the chip shortage to tone down in the second half of this year, but not return to near-normal levels until 2023.

General Motors GM has announced that it will be putting the shutters down for its pickup truck factory in Ft Wayne, IND, for two weeks next month as the company is facing a severe shortage of computer chips.

The Wayne plant will remain closed between Apr 4 and Apr 11. At present, it is running on three shifts per day, manufacturing Chevrolet Silverados and GMC Sierra light-duty pickups. Since the plant employs more than 4,000 blue-collar workers, it is a matter of concern.

General Motors reported that all of its North American assembly plants have at least one shift running since Nov 1, 2021. Throughout this global crisis, GM has routed most of its semiconductor purchases to pickup trucks and large SUV factories as they qualify for GM’s most profitable vehicles.

Despite the grim situation, the automaker is optimistic that it can tide over the chip crisis. The scenario was expected to improve, but probable shortages of rare earth metals caused by the Russia-Ukraine war is an added worry. Uncertainty and unpredictability loom large in the semiconductor supply base, but GM is actively working to come up with measures.

The computer chip shortage that has been irking the auto and other industries for a long time has its roots in the pandemic in early 2020. As U.S. auto manufacturers had to halt production and close their factories to check the spread of the virus, and some parts companies had to cancel orders for semiconductors, the chip deficiency crept in and now threatens production even for major auto giants like GM.

With the pandemic forcing people to stay indoors, there was a demand surge for gaming consoles and gadgets with a high dependency on computer chips. Since electronic goods demand skyrocketed, the chip makers shifted their production base to these goods, thus creating a shortage of weather-resistant automotive-grade chips once auto production resumed.

The severe onslaught of the second wave of the pandemic that hit Asian countries like Malaysia further worsened the problem as chips are finished in these countries.

Analysts expect the chip shortage to tone down in the second half of this year, but not return to near-normal levels until 2023.