General Motors Co.
will halt production at several North American factories and extend shutdowns at some others because of a protracted shortage of semiconductor chips that is disrupting the auto industry’s hopes for a bounceback this year.
The auto maker said Thursday that three plants previously unaffected by the chip shortage will be idled or have output reduced for one or two weeks, including a factory in Tennessee and another in Michigan that make popular midsize sport-utility vehicles. Vehicles affected include the Chevrolet Traverse SUV, and the Cadillac XT5 and XT6 SUVs.
GM also will extend closures of a Kansas City-area factory and a plant in Ontario until May 10. Both facilities have been closed since February, as GM diverts chips from less-popular models to large pickup trucks and SUVs, which are its biggest profit producers.
“GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products,” a company spokesman said. So far, GM has avoided taking downtime at the four factories where it makes the company’s largest pickup trucks and SUVs, he said.
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