Affected by lack of core: GM to suspend some pickup truck production

July 22, according to foreign media reports, General Motors said on Wednesday that it will suspend the production of some pickup trucks in the United States and Mexico next week due to a continued global semiconductor shortage. Plants in Michigan, Indiana and Mexico, which make the Chevrolet Silverado and GMC Sierra pickups, will cut production, the report said.

The production cuts include the temporary closure of the company’s Fort Wayne, Indiana, and Silao assembly plants in Mexico next week. Its Flint assembly plant in Michigan will also move from three shifts to one shift. GM said it expects the plants to resume normal production the week of Aug. 2.

The global shortage of cores has exacerbated the reduction of production in the automotive industry. According to statistics from the American consulting firm Ariplatin, the global automotive industry will lose 3.9 million units of production due to semiconductor shortages in 2021, with an estimated loss of US$110 billion. Japanese media said that due to the intensified competition with other industries such as consumer Electronics in the process of social digitization, Japan’s domestic auto giants have been unable to purchase parts and have continued to reduce production since the beginning of the year. It is unknown when it will return to normal. Against the background of high demand, semiconductor manufacturers have an advantage in price negotiations, and some people worry that rising costs will squeeze the profits of various car manufacturers.

In Japan, Mazda suspended the production of domestic factories in Japan for the first time in July, Nissan also implemented a production reduction, and Toyota will also implement a 5-day suspension in August. The current situation of various car companies is “not optimistic.” The report also said that since the beginning of the year, semiconductor manufacturers have raised prices for some products due to soaring raw material prices. The car dealer giant has strict cost requirements for parts suppliers, and it is even said that “price increases are not allowed”, but the current tight supply and demand has changed the situation. The attitude of the semiconductor industry has become strong, and the power relationship culminating in car dealers has been shaken.

The Links:   1DI300ZP-120-02 G150XTN069 LCD-SOURCE