Chevy Silverado Production Didn't Happen Last Weekend

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Is there more trouble ahead?

General Motors did everything it could to prevent this from happening, but it was only a matter of time. The Detroit Free Press reports the automaker was forced to suspend production of the Chevrolet Silverado and GMC Sierra full-size and heavy-duty pickup trucks at two plants this past weekend.

Overtime shifts were canceled at the Flint Assembly in Michigan and Indiana's Fort Wayne Assembly plant as the semiconductor chip crisis continues to get worse. Like cross-town rival Ford, a majority of GM's North American plants will forgo the traditional two-week shutdown typically reserved for re-tooling in order to help make up for lost production time.

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This is not guaranteed, however, as the global chip shortage shows no signs of ending anytime soon. Automaker executives are working closely with the Biden Administration to find a way out of the mess, such as domestic chip production. Problem is, setting that up won't happen overnight. GM has been doing everything it can to prevent the chip shortage from affecting its highly profitable trucks and SUVs. It even stopped Camaro production indefinitely to conserve chips for Silverados and Sierras. The Camaro has been a slow-seller for the past few years.

Workers at both plants got wind something was happening last Friday evening and, just a few hours later, were informed all Saturday and Sunday overtime shifts were canceled.

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On the one hand, that's good because these factory employees could use the time off to spend with their families, but they're also missing out on lucrative overtime pay.

Last February, GM CEO stated the chip shortage would not affect trucks and SUVs this year, and making up lost time over the summer is now more critical than ever. Barra also said the lack of chips could ultimately cost GM upwards of $2 billion in lost earnings this year. The focus right now is to get chip supplies back to a healthier level for the second half of the year.

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Source Credits: Detroit Free Press

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