By Dhirendra Tripathi
Investing.com – Shares of Ford Motor (NYSE:) and General Motors (NYSE:) traded up 1% and 0.6% respectively in Friday’s premarket, shrugging off corporate decisions. stop production at their Michigan factories.
Ford will suspend production at its Flat Rock assembly plant next week, where it builds the Mustang, due to the global shortage of semiconductors.
GM cancels production of its Lansing Grand River assembly. The company said the production shutdown was unrelated to the chips. He provided no further details. The plant makes Cadillac CT4s, Cadillac CT5s and Chevrolet Camaros, GM said.
The chip shortage forced Ford to halt production at its Kansas City assembly plant last month, prompting the company to warn that current-quarter vehicle volumes will decline.
According to a previous communication from GM, starting Monday, the company will halt production for two weeks at its assembly plant in Fort Wayne, Indiana, due to a shortage of semiconductor chips. The unit manufactures the Chevrolet Silverado 1500 and GMC Sierra 1500 pickup trucks, according to Reuters.
Shortages of parts, especially semiconductor chips, have plagued most automakers for more than a year as capacities have clashed to meet demand from end users such as phone makers laptops, laptops, cars, cameras, washing machines, among other gadgets.
Pandemic-induced shutdowns have disrupted production schedules at factories in Asia, primarily in China, Vietnam and Southeast Asia. Labor shortages and congested ports have all contributed to delivery delays.
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