Engines assembled as they make their way through the assembly line at the General Motors (GM) plant in Spring Hill, Tennessee, August 22, 2019.
Harrison McClary | Reuters
DETROIT – General Motors restarts production sooner than expected at a Tennessee crossover plant after improving the supply of semiconductor chips needed to produce vehicles in the unit.
The carmaker’s Spring Hill assembly plant will return to normal production on Monday, instead of April 26, a week earlier than initially announced by the company on Thursday. The plant builds the GMC Acadia and Cadillac XT5 and XT6 crossovers.
A GM spokesman attributed the change in programming to short-term improvements in consumables, allowing the carmaker to avoid the impact of production at the plant. The United Auto Workers union informed the more than 2,800 hourly workers in Spring Hill on Tuesday about the change of plans.
The company will also not stop production next week of the Chevrolet Blazer at a factory in Mexico, which was announced last week due to a lack of chips. Other plant shutdowns due to the disruption of parts in Michigan, Kansas and Canada remain unchanged.
“Following our announcement on Thursday, April 8, the GM supply chain organization has made progress in working with our supply base to mitigate the short-term impact of the semiconductor situation on both the Spring Hill Assembly and the Ramos Assembly,” he said. GM in an emailed statement.
Drivers characterized the lack of chips as fluid. GM, Ford Motor and others have said the shortfall will reduce their billions in revenue in 2021.
Semiconductors are key components in the automotive industry used in infotainment, power steering and braking systems, among others. As more factories closed last year due to Covid, suppliers have shifted semiconductors away from carmakers to other industries, creating a shortage after consumer demand returned stronger than expected. The parts can contain several sizes and different types of chips.
The wealth change for GM, though unrelated, comes a day after CEO Mary Barra and other business leaders in the automotive, technology and a variety of industries met with President Joe Biden to discuss the deficit of semiconductor chips.
After the meeting, GM, Stellantis (formerly Fiat Chrysler) and a lobby group for Detroit carmakers issued statements saying they are grateful to the Biden administration for holding the meeting and making it a priority. They said they look forward to working with Biden to address the shortcoming as well as the long-term warranties for the supply of such parts.