Monday, October 7

Why GM and Ford will cut North American production now that the economy is recovering


The United States economy is recovering strongly, promising situation for the automotive industry, but then why the two giants Detroit have decided to reduce their production

Por qué reducirá GM y Ford su producción en Norteamérica ahora que la economía está recuperándose
The shortage of semiconductors, another challenge for the automotive industry.

Photo: Scott Olson / Getty Images

The world’s largest economy is growing at its fastest rate since 1984 , your growth forecast for 2021 is more than 6% , the manufacturing sector advances and employment recovers, as if that were not enough mass vaccination works and normality returns .

Given this expectation, one would think that the automotive industry is ready to take off, but unfortunately there is another great obstacle to overcome: the shortage of semiconductors .

General Motors and Ford Motor announced that they will further cut vehicle production due to the semiconductor shortage that has affected the automotive industry triz worldwide.

General Motors , America’s largest automaker , pointed out that will cut production for a few weeks at its Spring Hill assembly plant, at its assembly plant in Ramos Arizpe, Mexico and at its factory in Lansing Delta Township, Michigan.

Lansing Grand River Assembly will remain without activities until the last week of April, while its CAMI Assembly (Canada) and Fairfax Assembly plants will do so until the second week of May.

For its part, Ford , the second largest car manufacturer largest in the country, will stop production at the Chicago plant, the Flat Rock assembly plant and part of its assembly plant in Kansas City . In the Ohio assembly plant he will work with reduced hours.

Against this background representatives of the The US automotive industry asked the government for its help during the week , while warning that the global semiconductor shortage could translate to 1. 28 million fewer vehicles built this year and discontinuing production for another six months .

The US government has already manifested itself and its spokesperson Jen Psaki, pointed out that “This is something in which there is great attention at the highest level of government. ” The White House plans to hold a summit on the problem of shortages next Monday chip , in which the presence of the GM CEO , Mary Barra, and president and Ford executive , Jim Farley, as well as the top executives of technology firms.

It transpired that President Joe Biden wants at least $ 50, 04 millions of dollars to help boost semiconductor production in the United States, but that does not solve the needs in the short term .

With information from El Economista

You may also like:

Estrella Jalisco will give away a supply of beer for a whole year

What are the two low-cost airlines that will offer economy tickets? monkeys in the United States?

New York will offer one-time payment of up to $ 15, 600 to undocumented immigrants