The semiconductor shortage strikes again.
The past two years have been fraught with massive challenges for the automotive industry, which continues to face setbacks due to the global pandemic, global economic slowdown, and the crippling semiconductor shortage. According to President Biden, the semiconductor shortage is improving, but the global market seems to disagree, with Toyota announcing big cuts to its production that will affect popular models such as the Toyota Prius and Lexus LS. The latest manufacturer to feel the effects of the shortage is Cadillac, which recently announced that production of the Cadillac CT4 and Cadillac CT5 luxury sedans has been pushed back to 20 September.
The good news for Cadillac fans is that production of the high-performance Blackwing versions will continue at the GM Lansing Grand River plant. The stoppage of the CT4 and CT5 is one of many production issues affecting General Motors' North American production schedule. According to GM Authority, production has also been affected at the Lansing Delta Township Assembly plant in Michigan which will slow down production of cars such as the Buick Enclave and Chevy Traverse. The GM Spring Hill Assembly Plant slow down will affect the production of GM products such as the GMC Acadia and Cadillac XT5. The GM Ramos Arizpe plant in Mexico will also halt production of the popular Chevy Blazer until 6 September.
GM has prioritized its most popular models for production such as trucks and SUVs, and has even resorted to cutting certain features. Certain models are being left unfinished, or in a "build-shy' state awaiting semiconductors. The Federal administration is currently in negotiations with governments in Malaysia and Vietnam to deem semiconductor plants critical, which should boost production levels despite severe outbreaks of Covid-19 in those nations. With no true end in sight for the global shortage, manufacturers will have to trim growth expectations, and buyers will have to turn to the second-hand market.