Chip shortage forces GM to pause production at Indiana plant

Mar 25, 2022, 7:28 AM | Updated: 11:54 am

DETROIT (AP) — General Motors is shutting down its pickup truck factory in Fort Wayne, Indiana, for two weeks next month because the company has run short of computer chips.

The auto industry continues to face supply chain issues more than a year after a global chip shortage first emerged in late 2020.

Chip supplies have improved during the first three months of this year compared with 2021, GM said, improving production and deliveries in the first quarter. But there’s still uncertainty in getting supplies from chip manufacturers.

The Fort Wayne plant will be closed the weeks of April 4 and 11. It has been running on three shifts per day making Chevrolet Silverados and GMC Sierra light duty pickups. The plant employs more than 4,000 blue collar workers.

“There is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward,” GM said Friday.

All of GM’s North American assembly plants have been running on at least one shift since Nov. 1 of last year, the company said. Throughout the chip shortage, GM has sent most of the semiconductors it gets to pickup truck and large SUV factories. Those are the company’s most profitable vehicles.

Earlier this week, GM President Mark Reuss said he’s confident the company can manage its way through supply chain difficulties including chips and possible shortages of rare earth metals brought on by the Russian invasion of Ukraine.

“We’re not a new automaker. We’ve got lots of volume, lots of partnerships. We’ve got over 20,000 suppliers, $88 billion of material that we run through that chain to make our cars, trucks and crossovers,” he said. “We’re not new to this game. We work on it every day, and it’s never over.”

The roots of the computer chip shortage bedeviling auto and other industries stem from the eruption of the pandemic in early 2020. U.S. automakers had to shut factories to help stop the virus from spreading and some parts companies canceled orders for semiconductors.

At the same time, with tens of millions of people hunkered down at home, demand for laptops, tablets and gaming consoles, technology heavily reliant on computer chips, skyrocketed.

And though auto factories were closing, demand for vehicles remained surprisingly strong. When auto makers did begin to open their factories, they found that chip makers had shifted production to other electronic goods being bought in vast quantities by people sheltering at home, creating a shortage of weather-resistant automotive-grade chips.

Then, just as auto chip production started to rebound in late spring, the highly contagious coronavirus delta variant struck Malaysia and other Asian countries where chips are finished and other auto parts are made.

Automakers and many analysts have said they expect the chip shortage to ease in the second half of this year, but not return to near normal levels until 2023.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - A sign is shown on a Google building at their campus in Mountain View, Calif., Sept. 24, 201...
Associated Press

Google hopes ‘Bard’ will outsmart ChatGPT, Microsoft in AI

Google is girding for a battle of wits in the field of artificial intelligence with “Bard,” a conversational service apparently aimed at countering the popularity of the ChatGPT tool backed by Microsoft. Bard initially will be available exclusively to a group of “trusted testers” before being widely released later this year, according to a Monday […]
16 hours ago
Lizzo performs a medley at the 65th annual Grammy Awards on Sunday, Feb. 5, 2023, in Los Angeles. (...
Associated Press

Grammys rebound from COVID years, reach 12.4 million viewers

NEW YORK (AP) — An estimated 12.4 million people tuned in to watch stars Harry Styles, Lizzo and Bad Bunny perform at the Grammy Awards, along with a tribute to 50 years of rap history. That’s up from the pandemic-affected broadcasts of the last two years, the Nielsen company said on Monday. Live viewership was […]
16 hours ago
FILE - A walkway leading into the school in Wales, Alaska, where a 24-year-old woman and her 1-year...
Associated Press

Polar bear in fatal Alaska attack was in poor health

ANCHORAGE, Alaska (AP) — A polar bear that killed a young mother and her baby last month in western Alaska was likely an older animal in poor physical condition, but tests came back negative for pathogens that affect the brain and cause aggressive behavior, officials said. Dr. Kimberlee Beckmen, a state wildlife veterinarian, collected and […]
16 hours ago
Associated Press

Fire engulfs Chicago-area warehouse; smoke seen for miles

CHICAGO HEIGHTS, Ill. (AP) — Fire swept through a commercial warehouse Monday in suburban Chicago, producing a smoke plume that could be seen for miles. The morning fire at Morgan Li, a maker of fixtures and furniture in Chicago Heights, was extinguished around noon, city spokesman David Ormsby said. No injuries were reported. The cause […]
16 hours ago
Associated Press

How major US stock indexes fared Monday 2/6/2023

Stocks slipped again on Wall Street. The S&P 500 fell 0.6% Monday, its second straight fall after a stunningly strong report on the jobs market dented the market’s hopes that interest rates would ease. The Nasdaq and the Dow also fell. The sharpest action was again in the bond market, where expectations are rising for […]
16 hours ago
Associated Press

Tyson Foods, Dell fall; Tesla, Life Storage rise

NEW YORK (AP) — Stocks that traded heavily or had substantial price changes Monday: Tyson Foods Inc., down $2.95 to $61.08. The meat producer’s fiscal first-quarter profit and revenue fell short of analysts’ forecasts. Dell Technologies Inc., down $1.28 to $40.96. The computer maker said it is cutting about 5% of its workforce. Tesla Inc., […]
16 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
Chip shortage forces GM to pause production at Indiana plant