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Autoworld: General Motors halts production again over computer chip shortage

*Automotive industry stakeholders say a broad spectrum of consumer products is also feeling the chip pinch amid the global chip shortage

Emmenuel Akosile | ConsumerConnect

The continued chip shortage that has run roughshod on leading automakers, again, has taken a horrible turn, as General Motors (GM) said that the company would dramatically cut its North American vehicle production because of the situation.

ConsumerConnect learnt the GM’s decision last Thursday, marked the second time that the automobile manufacturer has halted production because of the chip shortage in the last two months.

Who knows how the chip shortage will 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, agency report said.


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 such as the Chevrolet Blazer, GMC Terrain, and Chevrolet Trailblazer will be unaffected, according to report.

The company in a statement issued Thursday, July 14, 2022, said: “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.

Although the industry hoped it would only be a short-term issue, the chip shortage has spiraled out of control. Some industry analysts have said it’s possible that the problem could last as long as late 2022.

Far-reaching effects of chip shortage

It was gathered not only has the chip shortage impacted automotive consumers, but 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.

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

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.

Francoise von Trapp of 3DIncites reportedly said: “If you’ve been trying to get a home renovation project started, you may be waiting for your new range, fridge, or dishwasher.

“I was one of the lucky ones! I renovated my kitchen in February, and everything was in stock. But that’s not the case for everyone.”

von Trapp also stated: “If you can get your hands on the latest appliances, chances are they will cost more than they did two years ago.”

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