General Motors to Resume Production at 5 Plants Following Chip Shortage
General Motors has revealed it will restart production at five of its plants beginning in June, after being shut down over the past several months due to the global semiconductor chip shortage.
According to an emailed statement to Bloomberg on Thursday, GM is expected to restart two of its plants in Mexico, one in Canada, one in the US, and another in South Korea. The company’s SUV plant in San Luis Potosi, Mexico, and another plant in Ramos Arizpe, Mexico, that manufacturers the Chevy Blazer and Equinox will begin production on May 31, after being put on idle since the beginning of the month.
GM’s factory in Ingersoll, Ontario, which also produces the widely-popular Equinox, will resume operations on June 14 through to July 2, during which the plant will be shut down for two weeks to undergo scheduled maintenance. The automaker’s Lansing Grand River plant in Michigan will restart assembly of its flagship Camaro sports car come June 21, followed by the production resumption of the Cadillac CT4 and CT5 on June 28.
In the meantime, the company’s plant in Bupyeong, Korea will resume full production also on May 31, after operating at only 50% capacity since the end of April. The latest resumption at GM’s key facilities puts the company in a more robust position as the global auto industry continues to struggle amid the semiconductor shortage. The automaker still anticipates to reach its previous profit guidance for 2021, and following the news, its shares jumped by more than 3% Thursday morning.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
