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Four GM Plants To Cut Production Due To Chip Shortage
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General Motors has announced that an ongoing microchip shortage will result in production cuts at four GM plants.

In a statement, the automaker said that it would “take downtime on all shifts the week of Monday, February 8th” at the GM plants located in Fairfax(Kansas), Ingersoll (Ontario), and San Luis Potosi (Mexico). Additionally, GM said that its Bupyeong 2 assembly plant in South Korea will operate at half capacity starting next week.
“Semiconductor supply for the global auto industry remains fluid,” GM said in a recent statement. “Our supply chain organization is working closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM. Despite our mitigation efforts, the semiconductor shortage will impact GM production in 2021.”

Vehicles expected to be affected by the production cut at the four GM plants listed above include the Buick Encore, Cadillac XT4, Chevy Equinox, Chevrolet Malibu, Chevy Trax, and GMC Terrain.
“We are currently assessing the overall impact, but our focus is to keep producing our most in-demand products – including full-size trucks and SUVS and Corvettes – for our customers,” GM said.
GM isn’t the only automaker affected by the global microchip shortage. Ford Motor Company, Volkswagen AG, Toyota Motor Corporation, Nissan Motor Corporation, and Subaru Corporation have also reduced production as a result of the shortage.

AutoForecast Solutions recently announced that the shortage has resulted in lost production totaling 564,000 vehicles globally so far, with an estimated impact of 964,000 units for the year.
GM voiced its concern over the chip shortage earlier in January. The shortage has also resulted in reduced availability for certain options on GM’s full-size SUV line.
“Due to the fluidity around the availability of parts, our current plan is to update the plants each week,” GM said. “Our intent is to make up as much production lost at these plants as possible.”

GM added that the shortage would not impact the automaker’s “commitment to an all-electric future,” and that further details would be provided in the 2020 earnings report next week.
 

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It's because of the increase in laptop sales and PS5.
 

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