(ETH) – The global shortage of computer chips is getting worse, forcing automakers to temporarily close factories including those that build popular pickup trucks.
According to a report from KTLA5 News, General Motors announced Thursday that it would pause production at eight North American 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. The 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. ABC News stated: “It now appears to be accelerating in the wrong direction,” said Jeff Schuster, president of global vehicle forecasting for LMC Automotive, a consulting firm.
Industry analysts say the delta variant of the novel coronavirus has hit employees at chip factories in southeast Asia hard, forcing some plants to close. That’s worsened a chip shortage that was starting to improve earlier in the summer.
“Now the prospects for new sales for the rest of the year continue to dim with the reality that tight inventory will last well into 2022,” said Kevin Roberts, director of industry insights for Cargurus.com.
