Mexico truck plant halts production further due to supply chain problem, says GM

General Motors has announced that it will extend a production halt at its Silao Assembly Plant in Mexico due to an undisclosed temporary supply chain issue, affecting the production of Chevrolet and GMC pickup trucks. The halt will be extended until March 20, while production at the central Mexico plant was stopped from March 4-12 due to the same issue. The automaker has stated that it is working with its suppliers to resolve the issue and plans to resume production next week.

GM has declined to disclose the supply chain issue, but has confirmed that it is not connected to the ongoing global shortage of semiconductor materials that has impacted many automakers around the world. In January, GM’s Chief Financial Officer, Paul Jacobson, acknowledged the automaker continued “to face some supply chain and logistics issues, but overall, things remain trending in the right direction.”

The production halt at Silao is not related to GM’s efforts to optimize inventory as it plans to idle its Indiana assembly plant for two weeks starting March 27. The plant builds Chevrolet Silverado and GMC Sierra pickup trucks to maintain “optimal inventory levels with our dealerships.”

The news has affected GM’s stocks, which closed down 0.5 percent on Tuesday at $35.60. GM has been closely monitoring its supply chain since the pandemic broke out, resulting in many manufacturers struggling with material shortages and disruption. Despite the challenges, GM remained relatively resilient in 2020, whereby the automaker has managed to maintain its margins and achieve its electric vehicle goals.

In conclusion, GM’s extension of its production halt at its Silao Assembly Plant in Mexico has impacted the production of its Chevrolet and GMC pickup trucks due to an undisclosed temporary supply chain issue. However, the automaker is working with its suppliers to resolve the issue and will resume production next week. Despite the ongoing supply chain and logistics issues, overall, GM remains on track toward its electric vehicle goals.