Chip Shortage Shuts Down Almost All GM’s North American Production

GM is shutting down production at almost all of its North American plants as a result of the global chip shortage.

The COVID-19 pandemic has led to a global semiconductor shortage. Initially, it started as a result of production delays from lockdowns and quarantine, and was exacerbated by increased demand for computers, tablets and consoles, as well as GPUs for crypto mining.

The auto industry has been particularly hard hit, with almost every major manufacturer slowing or halting production as a result of the shortage. GM had previously announced it would ship some 2021 trucks without their full complement of fuel economy chips, leading the vehicles to get 1 MPG less than previous models.

Now GM is halting production altogether at most of its North American plants. According to Detroit Free Press, production will continue in Arlington Assembly, Flint Assembly, Bowling Green Assembly and part of Lansing Grand River Assembly. All other plants, however, will halt production.

Chipmakers are working hard to increase production, with even Intel pivoting to making automotive chips in an effort to help ease the strain. Unfortunately, it will still be some time before supply catches up to demand.