General Motors will pause all its assembly plants in North America commencing on Monday as the COVID-19 pandemic affects the production of semiconductor chips overseas. The company said that its Arlington Assembly in Texas, where they manufacture highly profitable full-size SUVs, will continue working production next week.
It works along with Flint Assembly, where it makes its heavy-duty pickups, Bowling Green Assembly in Kentucky, where it makes its Corvette, and a portion of Lansing Grand River Assembly, where it will make some Chevrolet Camaro and Cadillac Blackwing cars. All other assembly plants in North America will idle starting Monday.
General Motors spokesman Dan Flores said that all the announcements made are related to the chips shortage. The only plant down that’s not related to that is Orion Assembly. The company is also experiencing a global shortage of chips used in a variety of car parts since early this year.The chips are used in small electronics, and as more workers and children stayed home from work and school last year during the pandemic, demand for personal electronics, such as laptops, rose and created a shortage of chips.
General Motors has to either temporarily pause the production or build vehicles just scared of all the parts to await chip parts to finish production and ship the vehicles to showrooms. New car inventory has remained tight and prices high.Flores said that Covid is driving supply constraints in countries that produce semiconductor chips. But they can’t reveal if employees have a high rate of infection or if it’s the government putting restrictions on plants due to the pandemic.