The global shortage of computer chips is getting worse, forcing automakers to temporarily close factories. The cuts will compound an already short supply of cars, trucks and SUVs on dealer lots nationwide, which has pushed prices to record levels.
FILE - In this March 24, 2021 file photo, mid-sized pickup trucks and full-size vans are seen in a parking lot outside a General Motors assembly plant where they are produced in Wentzville, Mo. The global shortage of computer chips is getting worse, forcing automakers to temporarily close factories including those that build popular pickup trucks.
General Motors announced Thursday that it would pause production at eight North American plants during the next two weeks, including two that make the company’s top-selling Chevrolet Silverado pickup. “It now appears to be accelerating in the wrong direction,” said Jeff Schuster, president of global vehicle forecasting for LMC Automotive, a consulting firm.Industry analysts say the delta variant of the novel coronavirus has hit employees at chip factories in southeast Asia hard, forcing some plants to close. That’s worsened a chip shortage that was starting to improve earlier in the summer.
Consumers who need a new vehicle don’t have many choices with dealer supplies so short, Schuster said. Some have left the market because they can’t find anything that meets their needs. For others, “pricing is through the roof, so they can’t afford it and aren’t willing to spend what it’s going to cost to get that vehicle.”
The GM and Ford cuts come on top of temporary plant closures announced previously by Toyota, Nissan and Stellantis, formerly Fiat Chrysler.
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