GM, Ford stop car productions at more plants over scarcity of semiconductor chips

*The automobile manufacturers say the affected workers will receive a considerable portion of their remuneration during the factory shutdowns

Emmanuel Akosile | ConsumerConnect

While assuring consumers of working closely with their supply base to find solutions for suppliers’ challenges and mitigate impact, a semiconductor chip shortage occasioned by the COVID-19 pandemic is continuing to affect production of more cars by global leading automobile manufacturers.

ConsumerConnect gathered both General Motors and Ford have announced they will be shutting down even more of their factories in North America because of supply issues.

Ford Vehicles Assembly Factory   Photo: Assemblymag.Com

GM announced that it is halting production in Spring Hill, Tenn., Delta Township, Mich., and in Ramos Arizpe, Mexico, for up to two weeks.

Ford will be doing the same in factories located in Flat Rock, Mich., Kansas City, Mo., and Chicago. It will also slow down production in Avon Lake, Ohio.

GM Spokesperson David Barnas in a statement told The Washington Post: “We continue to work closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impact on GM.

“Our intent is to make up as much production lost at these plants as possible.”

Workers displaced by temporary shutdowns

The shutdowns will likely have a big impact on employees, with around 10,000 of GM’s workers being affected.

Barnas said affected GM employees would receive around 75 percent of their normal compensation through supplemental benefits and unemployment.

While Ford did not give an estimate for how many workers would be affected, a company spokesperson said they would also receive around 75 percent of their gross pay during the shutdown period.

It is recalled that this is not the first round of shutdowns that Ford and GM employees have had to weather.

ConsumerConnect had reported that GM extended plant shutdowns at the beginning of March due to the chip shortage.

The company then said it was leveraging “every available semiconductor to build and ship our most popular and in-demand products, including full-size trucks and SUVs for our customers.”

Ford also made additional cuts to car and truck production at the beginning of April. The automaker reported at the time that its available supply of cars and trucks at dealerships across the United States was 21 percent lower than the previous year.

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