General Motors and Ford Motor have said on Thursday they will slash more vehicle production over the continued semiconductor chip shortage that has roiled the global automotive industry.
The White House prepares a summit on the chip shortage issue next Monday that is expected to include GM CEO Mary Barra and Ford CEO Jim Farley and top technology company executives.
A U.S. auto industry group this week prompted the government to help and warned that a worldwide semiconductor shortage could lead to 1.28 million fewer vehicles built this year and cause delays to production for another six months.
President Joe Biden wants at least $50 billion to help increase U.S. semiconductor production, but that will not address short-term needs.
“This is something that there is a great deal of focus at the highest level across government,” said Jen Psaki, spokeswoman for White House.
GM said it will reduce production for two weeks at its Spring Hill assembly plant that makes SUVs. The cuts will start from Monday, and slash Chevrolet Blazer production for a week at its Ramos plant in Mexico and its Lansing Delta Township factory in Michigan.
GM’s Lansing Grand River Assembly will increase its downtime through the week of April 26, while its CAMI Assembly (Canada) and Fairfax Assembly plants will increase production cut through the week of May 10.
Ford, the second-largest U.S automaker, said it will cut production next week at its Chicago Assembly Plant, its Flat Rock Assembly Plant, and part of its Kansas City Assembly Plant. It will also run its Ohio Assembly Plant on a modifying schedule.
Ford said it will run more plants this summer during traditional shutdown weeks to comprise for lost production.
GM said these cuts have been factored into its forecast that the shortage could slash this year’s profit by up to $2 billion.
GM said it has not taken downtime or slashed shifts at any of its more profitable full-size truck or full-size SUV plants because of the shortage.
