GM plans plant shutdown over chip shortage

General Motors (GM) said an assembly plant in Indiana that builds pickup trucks will cease production for two weeks in April, over ongoing semiconductor chip shortages.

The Detroit automaker said it will halt production at its Fort Wayne assembly plant, which builds the Chevrolet Silverado 1500 and GMC Sierra 1500, for two weeks starting 4 April.

“There is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward,” GM said in a statement.

The car manufacturer said this is its first semiconductor-related full-size truck production downtime since August.

GM noted that overall it has “seen better consistency in semiconductor supply through the first quarter compared to last year as a whole. This has translated into improvement in our production and deliveries during the first three months of the year.”

The announcement came as GM CEO Mary Barra met with some lawmakers on Capitol Hill last week, including Republican Senator Todd Young of Indiana.

The company is backing a bill in Congress to provide $52 billion in government subsidies to boost US semiconductor manufacturing.

GM claims that legislation could help “alleviate the ongoing shortage that continues to impact US automotive manufacturing”.

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