8 More GM Factories Are Stalling Production Due to the Chip Shortage

Andrew Koole
· 3 min read
Supply chain issues have racked up prices on all kinds of goods this year. Many influences are fueling the post-pandemic inflation rate, but one of the key factors has been the
microchip shortage
which has hit the auto industry exceptionally hard.
Now, as experts say the shortage will last until 2023, General Motors (GM) says it plans to halt production in eight North American factories this fall. 
This is the second time the auto giant has pressed pause on production this year. At least five plants were temporarily shut down in April—four in the U.S. and one in Canada. 
They aren’t the only automakers facing production slow-downs. Competitors like Ford, Honda, Mitsubishi, Nissan, Toyota, and Volkswagen have also temporarily closed plants this year because of the lack of microchips.
Automakers are still feeling the effects of the chip shortage.

What plants will GM close?

New York Times
reports that four of the eight plants planned for temporary closure are in the U.S.—Fort Wayne, Indiana’s, Wentzville, Missouri’s; Spring Hill, Tennessee’s, and one in Lansing, Michigan. The other four are in Mexico (3) and in Canada (1).
Many of these plants already experienced downtime in April and July. As of the end of May, the semiconductor shortage had already cut the production of 278,000 GM vehicles, according to
GM Authority
The closures mostly affect the production of GM’s full- and midsize pickup trucks, including GMC Canyons and Sierras as well as Chevrolet’s Silverados and Colorados. 
Other models affected include Chevy’s Cheyenne, Traverse, Equinox, and Express, GMC’s Acadia, Savana, and Terrain, Buick’s Enclave, and Cadillac’s XT5 and XT6.
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How are other automakers weathering the chip shortage?

GM had to make some tough decisions this year, but the automaker is actually faring better than some of its rivals.
says the company bounced back from a slow first quarter, making a second-quarter net income of $2.8 billion.
Ford, on the other hand, reported a 50% decrease in its second-quarter profits. The U.S. brand’s sales were down 33% in August. Like GM, the company has slowed down production, removing features, and redesigning parts to use more accessible chips.
Dutch auto conglomerate Stellantis has also been hit hard by the dwindling access to semiconductors.
says the company stalled production of the Jeep Gladiator as a result of the crisis, prioritizing its highest profit models instead.

How do I save on car ownership costs during the chip shortage?

As you could probably guess, the auto industry’s struggle to keep up with demand has sent the price of new cars skyrocketing. As a result, used car prices are also on the rise.
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