GM extends production halt at Michigan plant amid chip shortage

289
1
GM extends production halt at Michigan plant amid chip shortage

The largest U.S. automaker said the extension of production halt at its Orion Assembly plant will go through at least Oct. 15. GM also said it would demonetize production at six other North American assembly plants because of the ongoing semiconductor chip shortage.

GM said it will not resume Bolt production or sales until it is satisfied that the recall remedy will address the fire risk issue.

In August GM expanded its recall of the Bolt to more than 140,000 vehicles to replace battery modules, at a cost now estimated at $1.8 billion. The automaker said it would seek reimbursement from the battery supplier LG.

It is not clear how long it will take GM to replace battery modules for recalled vehicles and whether it will have diagnostic software that will allow it to certify some modules do not need replacing.

GM said the additional three-week manufacturing halt at its plant in southeast Michigan where it builds the Bolt comes as it continues to work with our supplier to update manufacturing processes. Earlier this month, GM was forced to temporarily halt production at most of its North American assembly plants based on the chips shortage.

The new production cuts include a Lansing facility that builds the Chevrolet Traverse and Buick Enclave.

GM is also setting production at plants in Mexico and Canada where it builds SUVs like the Chevrolet Equinox, Blazer and GMC Terrain. It also makes further production cuts at the factories in Michigan and Kansas making cars, including the Chevrolet Camaro and Malibu.