US automaker GM adds extra shifts at US plants as chip supply improves

HOUSTON (ICIS)–In a sign that the global shortage of microchips may be easing, US automaker GM told ICIS on Wednesday that it is adding weekend overtime shifts at six North American plants in November.

A company spokesperson said the extra shifts will be added at its assembly plants in Arlington, Texas, Fort Wayne, Indiana, Wentzville, Missouri, Lansing Delta Township and Lansing Grand River in Michigan, and Silao in Mexico.

“Although the situation remains complex and very fluid, we remain confident in our team’s ability to minimize the impact of the semiconductor shortages that have been impacting the industry,” the company said.

The week of 1 November will be the first week since February that no GM assembly plants are idled because of the chip shortage, the company said.

Semiconductors are vital to production as the microchips are used to control the engine, antilock brakes, power steering, fuel-monitoring system and heating and air conditioning in modern vehicles.

The global shortage, which arose as demand surged following the reopening of economies that had shut down because of the coronavirus pandemic, has led to reduced production and decreased sales.

The automotive industry is a major consumer of petrochemicals, which contributes more than a third of the raw material costs of an average vehicle.

Polymers used in automobiles include polypropylene (PP), polyurethanes, nylon, acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN), polycarbonate (PC) and styrene butadiene rubber (SBR).

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