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GM Drops as Chip Shortage Shutters More Plants

Published 04/08/2021, 10:18 PM
Updated 04/08/2021, 10:19 PM
© Reuters.
GM
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By Christiana Sciaudone

Investing.com -- General Motors Company (NYSE:GM) slipped more than 3% after idling plants because of a chip shortage. 

The carmaker will idle or extend shutdowns at several plants in North America for at least a week, which will reduce operating profit by $1.5 billion to $2 billion this year, CNBC reported.

The automobile industry has suffered from a shortage of chips as they were redirected to other industries over the past year as vehicle-making factories closed during the pandemic.  

“We continue to work closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impact on GM,” GM said in an emailed statement to CNBC. “Our intent is to make up as much production lost at these plants as possible.”

 

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