Again, the semiconductor shortage is upon us.
The pandemic has seen demand for consumer electronics rise dramatically, but it isn’t all good news. The supply chain has been strained to breaking point by this unprecedented surge in demand. This has caused production shut downs at many North American GM plant.
General Motors announced recently that it would stop production at its Lansing plant due to the continuing shortage of semiconductors. 1,400 workers are employed at the factory to produce the Chevrolet Camaro and Cadillac CT4.
Daniel Flores, a spokesperson for the company, stated that they are continuing to work with their supply base to find solutions to our suppliers’ semiconductor needs and to minimize the impact on GM.
The issue has left many other North American factories affected, including three others that were forced to suspend production. Similar problems have been experienced in Mexico, Brazil, Canada and the United States. Although it is not clear when operations in the US will resume, we know that the San Luis Potosi Assembly facility, which has been shut down since February 8, is expected to reopen on April 5.
GM faces significant difficulties as well, due to the impact this will have on existing workers’ economic security and employment. According to estimates, the shutdowns and shortages could result in the loss of approximately 216,000 vehicles. This is roughly $2 billion in lost earnings.
It would be remiss to not mention that Toyota and Hyundai were able to forecast the shortage and have stockedpiled all necessary components in preparation for this eventuality. It’s still a difficult task, however, because computer chips will likely remain scarce until the second half this year.