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Chip Shortage Continues to Affect GM's Pickup Truck Production

Lack of Chips Leads to Temporary Suspension of General Motors Truck Production.

By Jen DemkinPublished 2 years ago 5 min read
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Photo Credit: firatun aini

The global semiconductor chip shortage has rattled many industries, but the auto industry is taking the biggest hit. One of the hardest-hit companies is General Motors (GM). The company has to temporarily suspend pickup truck production due to a lack of chips.

The Detroit automaker is not the only company to have halted production. Ford, Fiat Chrysler, Honda, Toyota, and Volkswagen have all been forced to do the same. As the crisis in chip supply continues, many vehicle manufacturers will have to face inventory woes.

Chip shortage

Former U.S. President Donald Trump had a trade conflict with China before being unseated in the White House. His administration's actions against key Chinese chip factories exacerbated the semiconductor shortage in the country. It made many automakers around the world shut off their assembly lines.

In 2019, the Trump administration banned the sale of semiconductors and other American-made components. This also created an impediment to making semiconductors in the United States. So, the producers could not sell them to one of the world's largest customers, China.

Trump's tech war led to losing millions of sales and several undesirable consequences. So, China boosted its chip production and began hoarding them if the ban intensified.

Problems also started to arise when the pandemic began. One of the enormous difficulties that automakers face is the scarcity of global chip supply. It has been more than a year since the problem started, but it's still not resolved until now.

Manufacturers had no other choice but to shut down their plants temporarily. Due to the delay in chip supply, they cannot finish building cars on the assembly line. Some manufacturers temporarily suspend certain optional features to keep their new vehicles moving to the consumer markets.

GM's chip supply

According to GM, they have enough chip supplies during the first three months of 2022 compared to the previous year. Their vehicle production and deliveries improved in the first quarter since the manufacturing of their truck parts had been smooth-sailing.

But the chip scarcity persists, and they're now facing another round of delays. GM will shut down its pickup truck factory in Fort Wayne, Indiana. Due to running short of semiconductor chips, they need to close their production for two weeks, starting April 4.

The Detroit automaker has experienced the same semiconductor supply problem in 2021. They had to idle four plants in the United States such as Wentzville, Missouri; Lansing, Michigan; Spring Hill, Tennessee; and Fort Wayne, Indiana. They also shut down three assembly plants in Canada and Mexico.

The company suspended the production of its most profitable vehicles, including its midsize and full-size pickup trucks and sport-utility vehicles.

Production in idle

In September 2021, the Detroit automaker paused its production at seven North American production plants, including two that make the best-selling Chevrolet Silverado pickup truck.

Semiconductor chips are critical parts for creating new pickup trucks and other vehicles. Chipmakers only provide automakers with a limited supply of chips. The auto industry expected the situation to improve for vehicle manufacturers gradually. However, other problems in the supply chain have clouded such expectations, including the ongoing invasion of Russia to Ukraine.

Mark Reuss, GM President, said that chip supplies were getting a little better in a CNBC interview. Even though the crisis isn't over, he said they are doing their best. But the unpredictability and uncertainty in the supply base of semiconductors cause GM has to idle their assembly plant in Indiana once again.

Despite consumers' high demand for pickup trucks, automakers built lesser vehicles in 2021 than in 2019. The ongoing war in Ukraine has also disrupted the global supply of neon gas, which is used to make semiconductors. A lot of supply-side factors are causing vehicle manufacturers to pause production.

Fort Wayne

For now, their only solution is to halt production at their assembly plant in Indiana. Currently, the Fort Wayne plant builds the following truck models:

For light-duty:

  • Chevrolet Silverado 1500 variants on newer T1 platform (crew cab, short box)
  • GMC Sierra 1500 variants on a T1 platform (crew cab, short box)

For heavy-duty:

  • Chevrolet Silverado HD single rear wheel double cab short box; double cab long truck bed with dually wheels
  • Chevrolet Silverado HD (regular cab long box)
  • GMC Sierra HD (regular cab long box)
  • GMC Sierra HD (single rear wheel double cab short box; double long box with dually wheels)

GM had to close down where they built their most sought-after pickup truck models over ongoing computer chip shortages for two long weeks. In a released statement, GM said that they are actively working with their suppliers to resolve the potential issues in their production.

GM met with lawmakers

The Chief Executive Officer of General Motors, Mary Barra, met with some policymakers including Republican Senator Todd Young of Indiana on Capitol Hill. In Congress, they backed a house bill to boost semiconductor manufacturing in the United States. The bill will provide $52 billion in government subsidies.

Semiconductors are used in almost everything from vacuum cleaners, home appliances, smartphones, etc. Since many sectors need chips, suppliers prioritize them, wreaking havoc on the American automotive industry. Forecasts also show that the chip shortage would stretch into the next year amid the rising demand for semiconductors.

The bill will benefit not just GM but also other carmakers and semiconductor producers. According to GM, the legislation could help ease the ongoing shortage that continues to impact automotive manufacturing in the U.S.

Democrats have muscled the legislation through the House. By strengthening the domestic semiconductor industry, it can better compete with China economically. The bill will also support the strained supply chains.

The bill garnered a vote of 222-210, marking an important step for a top priority for the Biden administration. However, the legislation is likely to be considerably revised because the negotiators resolve the differences with what the Senate passed eight months ago. According to President Joe Biden, America cannot afford to wait about the pressing matters on the semiconductor supply woes. He pressed the lawmakers to reach a deal quickly.

GM has had to halt production at its assembly plant in Indiana. Despite the efforts to ease the situation, the chip shortage will continue to affect the production of pickup trucks, cars, and other vehicles. New buyers expect that getting brand-new pickup trucks is hard to come by because of the production delays.

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About the Creator

Jen Demkin

Hi, I'm Jen from 4WheelOnline. My fascination with vehicles started in my childhood. I like cars more than dolls. I enjoy writing about automotive industry news, vehicle maintenance tips, and more.

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