Photo: General Motors
General Motors has announced a temporary idling of four of its factories in North America. The corporation stated that it is taking a proactive step to mitigate a part supply issue because of the recent earthquakes in Japan.
As we predicted last week, the fact that Japanese suppliers of automotive components have been forced to cease production until they assess the damages caused by the unfortunate event will affect other car makers as well.
Beginning April 25, 2016, General Motors will temporarily stop production at its factories in Spring Hill (Tennessee), Oshawa Flex Assembly in Canada, Lordstown factory in Ohio, and the Fairfax unit in Kansas.
General Motors has already specified that the temporary adjustment is not expected to have a material impact on its full-year production plans in North America.
Furthermore, the company does not expect a material impact on its second-quarter results or full-year financial results for North America.
The factories mentioned above will temporarily stop building several models for the Detroit giant. We are talking about the Buick LaCrosse and Regal, the Cadillac XTS and XT5, Chevrolet Cruze, Impala, Malibu, Equinox, and GMC Acadia.
Three of these models have been recently redesigned, and the company began shipping the first units to dealers in recent weeks. The two-week hiatus in production might be recovered shortly after Japanese suppliers resume manufacturing.
General Motors did not specify what kind of components it sources from Japanese suppliers. It is impossible to determine what common parts might be shared by the models mentioned above,but they can be obtained from the multitude of Japanese automotive suppliers.
After all, both Japan and the USA have massive automotive facilities, and each of them has a long chain of providers, but it is hard to find out what kind of common element links the two.
In the case of Toyota, Nissan, and Mitsubishi, three automakers that halted production last week, along with the assessment of damages to their facilities, key suppliers have stopped manufacturing.
Considering that a supplier of sunroofs and a manufacturer of microchips interrupted their activities last week, our best guess is that they are the most probable links between the shutdowns in production for both Japanese and American facilities.
Beginning April 25, 2016, General Motors will temporarily stop production at its factories in Spring Hill (Tennessee), Oshawa Flex Assembly in Canada, Lordstown factory in Ohio, and the Fairfax unit in Kansas.
General Motors has already specified that the temporary adjustment is not expected to have a material impact on its full-year production plans in North America.
Furthermore, the company does not expect a material impact on its second-quarter results or full-year financial results for North America.
The factories mentioned above will temporarily stop building several models for the Detroit giant. We are talking about the Buick LaCrosse and Regal, the Cadillac XTS and XT5, Chevrolet Cruze, Impala, Malibu, Equinox, and GMC Acadia.
Three of these models have been recently redesigned, and the company began shipping the first units to dealers in recent weeks. The two-week hiatus in production might be recovered shortly after Japanese suppliers resume manufacturing.
General Motors did not specify what kind of components it sources from Japanese suppliers. It is impossible to determine what common parts might be shared by the models mentioned above,but they can be obtained from the multitude of Japanese automotive suppliers.
After all, both Japan and the USA have massive automotive facilities, and each of them has a long chain of providers, but it is hard to find out what kind of common element links the two.
In the case of Toyota, Nissan, and Mitsubishi, three automakers that halted production last week, along with the assessment of damages to their facilities, key suppliers have stopped manufacturing.
Considering that a supplier of sunroofs and a manufacturer of microchips interrupted their activities last week, our best guess is that they are the most probable links between the shutdowns in production for both Japanese and American facilities.
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