Production cuts in 4 factories around the world including Bupyeong due to GM’s’semiconductor supply disruption’

Input 2021.02.04 07:46

GM also cut production due to shortage of global semiconductors
Bupyeong Plant 2 output To cut it in half
US, Canada, and Mexico plants are stopped
“Semiconductor supply fluid… has a big impact on production”

US automaker General Motors (GM) will reduce production at the same time at three plants in Bupyeong, Korea and North America, starting next week. While the shortage of automotive semiconductors has emerged as the biggest challenge in the automotive industry, GM, which boasts the world’s largest sales volume, was also hit by a direct hit.

According to Reuters on the 3rd (local time), GM plans to halt vehicle production at its factories in Fairfax, Kansas, Ingersoll, Ontario, Canada, and Potosi, San Luis, Mexico from the 8th. The Bupyeong Plant 2 decided to cut the production volume to half the previous level.

The shortage of automotive semiconductors began last year as the demand for automobiles decreased sharply due to the corona 19 pandemic last year, and the semiconductor industry greatly increased the proportion of IT semiconductors such as smartphones and PCs. As automobile demand recovered faster than expected from the second half of the year, the automobile industry rapidly increased production, but the imbalance was deepened as semiconductor supply and demand problems were encountered.

GM did not say how much it would cut production next week, but the industry expects losses to reach 10,000 units. Reuters said GM has become a company that is hit hardest by semiconductor shortages. “The shortage of semiconductors will affect vehicle production this year,” said GM spokesman David Banas. “The supply of semiconductors to the automotive industry remains fluid.”