The firm introduced it will shut manufacturing at two US plants — in Spring Hill, Tennessee, and Lansing Delta Township, Michigan, within the coming weeks. GM additionally prolonged shutdowns on the Fairfax Assembly plant in Kansas City, Kansas, and the CAMI plant in Ingersoll, Ontario, which have each been idled since February 8. And it can proceed the shutdown on the Lansing Grand River meeting plant, which has been down since March 15.
In addition, GM is halting Chevrolet Blazer manufacturing on the Ramos Assembly plant in Ramos, Mexico, in the course of the week of April 19, though that plant will proceed to construct the Chevy Equinox.
GM is bringing some plants again on-line as it tries to keep away from shortages of sure autos in its supplier inventories. The meeting plant in Wentzville, Ohio, which makes midsize pickup vehicles, will resume manufacturing this coming Monday. It has been down since March 29. And this previous Monday, the plant in San Luis Potosi, Mexico, restarted manufacturing of Equinox and GMC Terrain.
“We are seeing levels of … inventory tightness that goes beyond anything we have ever seen,” wrote Morgan Stanley auto analyst Adam Jonas in a word to shoppers Thursday. He mentioned that for some autos, prospects are having to pay above sticker worth, reasonably than lower than sticker worth.
GM has already warned that full-year earnings may very well be minimize by between $1.5 billion to $2 billion due to the chip scarcity. It mentioned these newest plant shutdown plans are in keeping with that earlier revenue steering.