The global chip shortage continues to disrupt the automotive industry. GM, the largest US automaker, will reduce production at eight assembly plants throughout North America.
GM plans to halt production at plants in Tennessee, Michigan, and Indiana, as well as various locations in Canada and Mexico, Reuters reports. The company reportedly plans to stagger the shutdowns to make sure the plants will continue to operate in some capacity in September.
The auto industry has been struggling with the chip shortage since at least January, when it was revealed that manufacturers around the world couldn’t source the processors they rely on for everything from infotainment and navigation systems to self-driving technologies and more.
GM decided in March to release several pickups without active or dynamic fuel management modules—which are used to optimize the fuel economy of those gas-guzzling vehicles—because the chip shortage prevented it from adding them to the otherwise finished trucks.
Now it’s decided to halt production instead. Reuters says the factories’ closure will affect the output of GM’s latest trucks, vans, and SUVs. The production of vehicles for some of its subsidiaries, including Buick and Chevrolet, will also be affected by the shutdown.
