Parts Scarcity Forces Ford and GM to Shut Down Two Michigan Factories

Ford, the United States' No. 2 manufacturer, announced it will halt production at its Flat Rock Assembly Plant, where the Mustang is built, next week due to a worldwide semiconductor shortage.

GM said that it will halt production at its Lansing Grand River assembly plant next week due to a temporary component shortage. The plant produces the Cadillac CT4, Cadillac CT5, and Chevrolet Camaro. GM said that the manufacturing pause was not connected to chips but did not give any details.

The automotive sector is now battling a worldwide chip scarcity caused by the COVID-19 epidemic, which has forced firms to reduce output, while high vehicle prices have largely offset the financial effect.

Ford warned last month that the chip shortfall would result in a reduction in current-quarter car sales. Ford paused production at its Kansas City assembly plant, which produces F-150 pickup trucks, for a week last month owing to a chip shortage.

Ford Motor Company, located in Dearborn, Michigan, said that manufacturing at its other North American factories would continue as usual.

GM said last week that it will cease production at a Fort Wayne, Indiana, assembly facility that makes the Chevrolet Silverado 1500 and GMC Sierra 1500 pickup trucks for two weeks starting April 4 due to a semiconductor chip shortage.