GM Planning to Pause Pickup Production at Indiana Plant

The semiconductor chip shortage is contributing to the temporary halt in production.

GM-Planning-to-Pause-Pickup-Production-at-Indiana-Plant
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General Motors says it plans to pause production of its pickups at an Indiana factory due to a continued semiconductor chip shortage. The truck maker will halt output from April 4 through the week of April 11.

The factory produces GMs full-size GMC Sierra and Chevrolet Silverado pickups. Its Canadian and Mexico plants also produce the trucks, but GM expects to continue production at those locations.

The chip shortage has impacted the auto industry for the better part of a year. The chips are critical components of new vehicles. Automakers had expected the situation to improve, but now the Ukrainian invasion of Russia is causing other supply chain hiccups.

Mark Ruess, president of GMC, said that things had been getting better but now says: “We’re not through this. We’re doing the best we can.”

In another GM statement, the company said, “Overall, we have seen better consistency in semiconductor supply through the first quarter compared to last year as a whole. This has translated into improvement in our production and deliveries during the first three months of the year. However, 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.”

Many auto manufacturers have prioritized semiconductor chips for vehicles that are in higher demand and more profitable for them. That means larger SUVs and pickup trucks where GM is concerned.

In 2021, GM sold more pickups than any other automaker. Its combined truck sales reached 768,698. There were 248,924 GMC Sierra trucks sold last year and 519,774 Chevrolet Silverado trucks. All figures were a slight decline from 2020’s sales, likely due to the chip shortage, the ongoing pandemic, economic uncertainties, and more people working from home.

 

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