Vertical Divider

GM, Ford. Toyota, Nissan Halt Some Production As Chip Shortage Worsens

The global shortage of computer chips is forcing automakers to temporarily close factories including those that build popular pickup trucks. New cuts will compound an already short supply of cars, trucks and SUVs on dealer lots nationwide that have pushed prices to record levels. Automakers reported that U.S. dealers had just under a million new vehicles on their lots in August, 72% lower than the 3.58 million in August of 2019.
 

• General Motors announced it would pause production at eight of its 15 North American assembly plants during the next two weeks, including two that make the company's top-selling Chevrolet Silverado pickup.
• Ford will stop making pickups at its Kansas City Assembly Plant for the next two weeks. Shifts will be cut at two more truck plants in Dearborn, Michigan, and Louisville, Kentucky.
• U.S. light vehicle sales fell nearly 18% in August compared with a year ago, while the average vehicle sale price hit over $41,000, a record, according to J.D. Power.
• Sales of Ford's F-Series trucks fell nearly 23% for the month. 
• Toyota said it would slash production by at least 40% in Japan and North America for the next two months, cutting production by 360,000 vehicles worldwide in September alone.
• Nissan, which announced in mid-August that chip shortages would force it to close its huge factory in Smyrna, Tennessee, for two weeks until Aug. 30, now says the closure will last four weeks, until Sept. 13.

 
The August sales dip and inventory shortages prompted Schuster to cut his U.S. sales forecast for the year to 15.7 million. Until the pandemic hit, sales had been running around 17 million per year. There is a little good news. Ford said its overall production rose to nearly 80% from July to August, although it’s not clear how long that would last.