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General Motors yet again, suspends production over computer chip shortage

*Experts say not only has the chip shortage impacted automotive consumers, it has also negatively affected the production of a broad range of electronic devices and home appliances

Emmanuel Akosile | ConsumerConnect

As the global shortage of the chip continues, and the chip shortage runs roughshod especially on automakers, General Motors (GM) has said that it would dramatically cut its North American vehicle production because of the situation.

ConsumerConnect reports the automobile manufacturer in a statement issued Thursday, September 2, 2021, confirmed this latest development marks the second time that GM has halted production because of the chip shortage in the last two months.

General Motors with its four core automobile brands as Chevrolet, Buick, GMC and Cadillac, manufactures vehicles in several countries of the world.

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The company also either owns or holds a significant stake in foreign brands, including Wuling, Baojun and Jiefang.

The chip shortage might play out long-term for the automaker, but it’s either extending or adding downtimes at eight plants in the United States (US), Canada, and Mexico to cut its immediate losses.

To start, much of the production trimming is reported to last for two weeks. Sedans are apparently getting a reprieve, but GM’s full-size and midsize pickup trucks like the Chevrolet Blazer, GMC Terrain, and Chevrolet Trailblazer will be unaffected, agency report also stated.

GM stated: “Although the situation remains complex and very fluid, we remain confident in our team’s ability to continue finding creative solutions to minimise the impact on our highest-demand and capacity-constrained vehicles.”

Though the industry has hoped it would only be a short-term issue, yet the chip shortage has spiralled out of control in recent times.

Some industry analysts have said it is possible that the problem could last as long as late 2022, according to report.

In terms of the far-reaching effect of the chip shortage on the automaobile industry and the consumers, it was learnt not only has the chip shortage impacted automotive consumers, it has also affected the production of electronic devices and home appliances.

Appliance sales have soared during the pandemic, especially after people got their CARES checks.

Electronics company LG, report said, even went so far as ditching its smartphone division so that it could concentrate on the home appliance market.

If you’ve waited until now to think about new kitchen appliances, you may want to pack a picnic basket because it’s going to be a while, report said.

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