Skip to main content

Market Overview

Chip Shortage Improving? GM Shortens Downtime At Its Key Tennessee Plant

Share:
Chip Shortage Improving? GM Shortens Downtime At Its Key Tennessee Plant

General Motor Co’s (NYSE: GM) Spring Hill Assembly facility that makes the GMC Acadia and Cadillac XT5 and XT6 crossovers, will return to regular production on April 26, a week earlier than initially planned, and the company no longer plans to halt Chevrolet Blazer production next week at a plant in Mexico, according to a CNBC report.

What Happened: The U.S. automaker is restarting production sooner than expected at a crossover plant in Tennessee after improved semiconductor chip supplies.

The United Auto Workers union informed Spring Hill’s more than 2,800 hourly workers of the change in plans Tuesday.

GM announced last week plans to extend production due to the ongoing semiconductor chip shortage. 

See Also: GM, Ford's Temporary Shutdowns Over Chip Shortage Spread To More Factories In North America

Why It Matters: Spring Hill Manufacturing is the largest GM facility in North America.  The flexible vehicle assembly plant and Global Propulsion Systems plant sit on 2,100 acres, according to the automaker’s website.

The shortage has already disrupted global supply chains and hit automakers everywhere, including Tesla Inc (NASDAQ: TSLA), and is even reported to have disrupted tech giant Apple Inc’s (NASDAQ: AAPL) production plans for MacBooks and iPads.

GM, Ford Motor, and others have said the shortage will cut billions off their earnings in 2021.  

Price Action: GM shares closed 1.96% lower at $58.49 on Tuesday.

Photo Courtesy: The Wikipeadian guy via Wikimedia

 

Related Articles (GM)

View Comments and Join the Discussion!

Posted-In: automakers Cadillac XT5 Cadillac XT6 Chip Shortage GMC Acadia semiconductorsNews Events Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com