[비즈한국] General Motors (GM) has announced that it will suspend car production at its North American plants due to a semiconductor shortage and indicated plans to extend the operational shutdown of other facilities.
According to foreign media including the Wall Street Journal (WSJ) on the 8th (local time), GM reported that "three plants that had not been affected by the semiconductor supply will be idle or face reduced car production for one to two weeks," adding that "this includes plants in Tennessee and Michigan that produce popular GM vehicles." These plants currently produce popular models such as Chevrolet's mid-size SUVs and the Cadillac XT5 and XT6 SUVs.
GM also plans to extend the closure of its plant near Kansas City and its plant in Ontario, Canada, until May 10. GM has been diverting semiconductors used for relatively less popular models to the production of its popular ones.
Automakers around the world have been suffering from a semiconductor shortage since the end of last year. In recent months, virtually all major car companies, including Toyota, Volkswagen, and Honda, have been experiencing semiconductor supply issues. Domestic automakers such as Hyundai Motor Company005380 and SsangYong Motor003620 have also taken measures to adjust production volumes or partially shut down factories. They have been gradually reducing car production for several months. Companies have stated that this phenomenon may continue for several more months.
A "failure in demand forecasting" is cited as the cause of the semiconductor shortage. When the spread of COVID-19 led to expectations of lower car demand, automakers reduced their semiconductor orders. However, contrary to expectations, consumer orders for new cars continued despite the pandemic, ultimately leading to a shortage of semiconductors.
Global consulting firm AlixPartners predicted that the global automotive industry's revenue will decrease by approximately $60.6 billion (about 69 trillion KRW) this year due to the semiconductor shortage. Meanwhile, GM stated that it will resume production at its Missouri plant on April 12. The plant had been idle for two weeks due to the chip shortage.