“These most recent scheduling adjustments are being driven by temporary parts shortages caused by semiconductor supply constraints from international markets experiencing Covid-19-related restrictions,” said GM. “We expect it to be a near-term issue.”
It will also reduce the Flint, Michigan, assembly plant to one shift rather than its normal three shifts during that same week. It will also halt production at its Silao Assembly plant in Mexico. Flint builds the heavy-duty versions of the Silverado and Sierra pickups, while Silao builds the Silverado 1500 Cheyenne for the Mexican market as well as the Sierra 1500.
Automakers will be forced to cut production by 3.9 million vehicles worldwide in 2021, costing them $110 billion in lost revenue this year, according to a chip shortage analysis by consultant AlixPartners.