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Ford and GM are pausing production on new cars because of the massive chip shortage

Multiple factories have had to shut down across the US.

ford f-150
Image: Unsplash

The global chip shortage has every sector of industry scrambling, and automakers have been particularly hard hit. Both Ford and General Motors Co. (GM) are halting production at some of their main factories, presumably waiting until more supplies arrive.

That’s bad news for anyone wanting to buy a new vehicle, especially those hankering for a pickup or SUV. GM is halting its lines at its two largest pickup factories, which primarily make GMC Sierra pickups and Chevrolet Silverados.

Three other factories are also being halted for a couple of weeks, with other lines like the Chevy Traverse SUV affected. In total, eight of its fifteen North American plants are going on shutdown for the next two weeks.

Ford is also reducing its production of the F-150 pickup, with one factory completely halted and another only having one of the usual three work shifts. Another plant in Kentucky that makes Ford Expedition, Lincoln Navigator, and Super Duty pickups will be running with reduced staff.

It’s an industry-wide problem, with Toyota, Nissan, and Stellantis, formerly Fiat Chrysler, all either temporarily closing plants or reducing the overall production figures in recent weeks.

That’s had a knock-on effect on inventory for dealers, who have 72% fewer vehicles on their lots compared to this time last year. Prices have gone up in response, which is starting to price some buyers out of the market. That’s caused a 14% drop in sales in the last month, vs the same period last year.

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