General Motors announced that production has halted at its pickup plant in Mexico. This follows last week's stoppage at the company's Bowling Green Corvette plant.
WWJ's Auto Beat Reporter Jeff Gilbert said the decision stems from the current chip shortage.
While this week's downtime is an unfortunate necessity, GM said it maintains that its production schedule has been stable throughout the third quarter.
Both the Mexico and Bowling Green plants are expected to resume production next week.
This news comes a few weeks after President Joe Biden signed a new law designed to address the chip shortage. The $280 billion Creating Helpful Incentives for the Production of Semiconductors for America (CHIPS) and Science Act into law aims to boost high-tech manufacturing in the U.S., with auto manufacturing among the biggest industries impacted by the recent shortage of chips.
The bill will, among other investments, provide $52 billion in subsidies for domestic semiconductor production and research. The new law will provide money for the construction of up to a dozen microchip “fabrication” centers across the country.
All new vehicle are built with a variety of microchips to control electronics systems, including everything from window, to seat adjustments to navigation systems.
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