General Motors further cuts production in North America over chip shortage

General Motors extended production decreases in North America on Wednesday because of a worldwide semiconductor chip shortage that is affecting the auto industry.

The American automaker said its Wentzville, Missouri, assembly plant would be idled in the weeks beginning March 29 and April 5. It will extend down time at its plant in Lansing, Michigan, which has been idled since March 15, by two weeks.

The action was factored into the automaker’s prior forecast that it could reduce $2 billion off this year’s profit, spokesman David Barnas said. GM did not reveal how much volume would be lost by the move, but said it meant to make up as much lost production as possible later in the year.

The issue of chip shortage emerged as North American auto plants were shut for two months to control the spread of the coronavirus last year and chip orders were canceled, and as demand increased from the consumer electronics industry as people worked from home and played video games. That’s now left carmakers rivaling for chips.

Semiconductors are used in cars, including monitoring engine performance, manage steering or automatic windows, and sensors used in parking and entertainment systems.

Meanwhile, GM said its San Luis Potosi, Mexico, assembly plant, idled since Feb. 8, will restart production with two shifts starting from the week of April 5.