GM and Ford to halt two Michigan assembly plants
GM expects to restart production from the week of April 11
General Motors Co (NYSE: GM) and Ford Motor Co (NYSE: F) are halting production at their Michigan plants next week as the two largest carmakers in the U.S. are facing challenges with parts supplies.
Ford on Thursday said due to a global semiconductor shortage, it would halt the production line at its Flat Rock Assembly plant next week, where it builds the Mustang.
In another instance, production at GM's Lansing Grand River plant--where the company manufactures Cadillac CT4, Cadillac CT5, and Chevrolet Camaro--will be down the week of April 4. This is due to a temporary parts shortage, which is unrelated to the global chip supply, GM spokesman Dan Flores said.
While GM said it anticipates restarting the production from the week of April 11, Ford did not provide any specifics. However, it is expected to start its production around the same time.
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"The global semiconductor shortage continues to affect Ford's North American plants — along with automakers and other industries around the world," Kelli Felker, a spokesperson at Ford, said in a statement.
However, Ford said that production at other North American plants would continue normally.
"Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect."
The auto industry is grappling with a global chip shortage triggered by the COVID-19 pandemic that has forced companies to cut production and has dragged on for over a year, hampering manufacturing worldwide.
Last month, Ford had warned that the semiconductor shortage would lead to a decline in vehicle volumes in the current quarter.
Picture Credit: Bloomberg
