Three General Motors plants that shut down for a week will now sit idle until at least mid-March. The automaker made the announcement this morning, prompted by a continuing global shortage of microchips.
The cuts halt or limit production of the Chevrolet Blazer, Colorado, Equinox, and Malibu; GMC Canyon and Terrain; and Cadillac XT4.
Honda and Nissan, meanwhile, each put numbers to the impact they expect the shortage to have on their 2021 production. In 2021, Honda says it will produce 100,000 fewer vehicles worldwide than planned. Nissan announced that it will produce 150,000 fewer than planned.
The problem comes from a global shortage of microchips. The average new car uses dozens of processors. Yet, thanks to a combination of coronavirus-related shutdowns at chip factories and a consumer buying spree that saw millions of the chips used for new laptops and other work-from-home technologies, automakers have been unable to buy as many as they need.
Chip manufacturers have pledged to speed production to help car companies catch up, but the backlog will take months to resolve.
