General Motors is extending production cuts at some of its North America factories due to a chip shortage that has roiled the global automotive industry, the U.S. carmaker said on Thursday.
The move’s impact has been baked into GM’s prior forecast that the shortage could shave up to $2 billion off this year’s profit.
GM’s Lansing Grand River assembly in Michigan will extend its downtime through the week of April 26.
The plant makes Chevrolet Camaros and Cadillac CT4 and CT5 sedans. It has been out of action since March 15.
GM’s Spring Hill assembly in Tennessee will shut down for two weeks starting the week of April 12. The plant makes the Cadillac XT5, XT6 and GMC Acadia.
The company said it has not taken downtime or reduced shifts at any of its more profitable full-size truck or full-size SUV plants due to the shortage.
The news was first reported by CNBC.
Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila