FI showroom red and grey logo
MenuMENU
SearchSEARCH

GM Keeps Plants Going Amid Chip Shortage

GM entered a deal with semiconductor chip manufacturers to keep its North American assembly lines in production.

February 9, 2022
GM Keeps Plants Going Amid Chip Shortage

 

Credit:

IMI

3 min to read


GM entered a deal with semiconductor chip manufacturers to keep its North American assembly lines in production.

Meanwhile, Ford Motor Co. idles many plants over a chip shortage.

Ad Loading...

All Detroit Three automakers face an ongoing shortage of semiconductor chips used in many car parts. The shortage has crippled their production across the industry since February 2021. Stellantis is the only company that confirms its North American plants continue to operate as normal.

Ford, currently, is the only company hitting a pause on production.

"I couldn’t speculate about the other companies," Ford spokeswoman Kelli Felker told Detroit Free Press. "The global semiconductor shortage continues to affect Ford’s North American plants – along with automakers and other industries around the world."

GM and Stellantis also saw a series of production disruptions throughout 2021 due to an inability to get chips.

But GM says they will not stop production because of the shortage.

Ad Loading...

CEO Mary Barra and CFO Paul Jacobson told investors at the Deutsche Bank Center in New York that GM predicts it will grow production volume by 25% to 30% globally in 2022 compared to 2021. The company secured deals with the chipmakers in its supply chain, according to a research note on Monday from Deutsche Bank analyst Emmanuel Rosner.

Ford has disrupted production at six North American plants as it works to mitigate the impact of the unavailable chips.

"Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect," Felker said.

The company idled the following plants as of Monday: 

  • Michigan Assembly: Bronco and Ranger production.

  • Chicago Assembly: Explorer, Lincoln Aviator and Police Interceptor SUV production.

  • Kansas City Assembly: F-150 production.

  • Cuautitlan Assembly plant in Mexico: Mustang Mach-E production.

  • Dearborn Truck and Kansas City Transit production will run on one shift. 

Ad Loading...

Barra told Wall Street last week that the chip shortage is easing and that she expected supply of chip parts to improve as the year progressed. 

In the Deutsche Bank research note, Rosner said GM's confidence that it can grow its production volume is based on "firm supply commitments from its semiconductor manufacturers across the chain."

"GM said it has been working with the supply base, tier 2 and tier 3 suppliers and built strategic relationships with manufacturers, providing it more transparency earlier," Rosner said. "The company has received firm commitment from semiconductor suppliers."

In 2021, GM built 3,990,845 vehicles, down 13.8% from 2020, said Sam Fiorani, vice president of Global Vehicle Forecasting at AutoForecast Solutions. But he forecasts that GM will grow its production this year by 29.1% to over 5.15 million units, "as long as supplies of parts remains steady."

Originally posted on Auto Dealer Today

More Showroom

Twilight of white hybrid car.
Showroomby Lauren LawrenceJuly 22, 2026

California Hybrids Reach State Record

The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.

Read More →
White meeting room in car dealership with rims displayed on wall and projected screen
Showroomby Hannah MitchellJuly 22, 2026

My Mercedes in the U.S.

The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.

Read More →
Photo of parked cars of various types for sale on a lot
Showroomby Hannah MitchellJuly 20, 2026

Used Sales Hit Summer Drag

The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.

Read More →
Ad Loading...
desert road with cars driving away, Rebates Incoming with red star graphic, F&I and Showroom logo
Showroomby Lauren LawrenceJuly 15, 2026

California Launches EV Rebate Program

Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.

Read More →
Aerial shot of a car dealership
Showroomby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Photo of cars lined up on lot
ShowroomJuly 10, 2026

The Trade-In Paradox

Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.

Read More →
Ad Loading...
Phot of a dark Kia vehicle interior with steering part of steering wheel and dashboard
Showroomby Hannah MitchellJune 29, 2026

Focus on Vehicle Cabins

The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.

Read More →
Photo of multiple new SUVs on a car dealership lot
Showroomby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →
Ad Loading...
Person pumping gas into car.
Showroomby Lauren LawrenceJune 17, 2026

Used EVs Outpace New

While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.

Read More →