General Motors to restart some plants hit by chips shortage

General Motors said on Thursday that it will soon be resuming production at five assembly plants across the world that have been idled because of a global semiconductor chips shortage.

GM said it is resuming operations at four plants in the United States, Mexico, and Canada from the next week. Two plants in Mexico – San Luis Potosi Assembly and Ramos Assembly – that build the Chevrolet Equinox, GMC Terrain, and Chevrolet Blazer will restart production on May 31.

GM said its supply chain organization continues to make strides working with the supply base to mitigate the near-term impacts of the semiconductor situation.

Next week GM will also restart full production on May 31 at its Bupyeong 1 Assembly in South Korea, which produces the Chevrolet Trailblazer and Buick Encore GX and has been running at 50% capacity since April 26, and return the Changwon assembly plant to two shifts.

GM’s CAMI Assembly plant in Ingersoll, Ontario, that builds the Equinox will restart production before it is expected on June 14 and run through July 2. The plant has been stalled since February 8.

Lansing Grand River will resume the production of the Chevrolet Camaro earlier than expected on June 21. The plant has been idled since May 10.

GM said it continues to leverage every available semiconductor for building its most in-demand products, including full-size trucks and SUVs, but said the situation continues to remain fluid worldwide.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.