Photo: GM
The Korean unit of General Motors is struggling with the global chip crisis, pretty much like everybody else, and as a result, it has turned to new production adjustments because there’s no other way around it.
GM Korea, which also builds models that are exported to the United States, such as the Chevy Trailblazer, has decided to give up on one shift at the No. 1 Bupyeong facility where the SUV is manufactured.
Furthermore, the No. 2 Bupyeong plant will relocate no less than 1,200 workers, with the transfers to be complete by the end of the year to No. 1 and Changwon factories.
Needless to say, these decisions are the result of a very constrained chip inventory that has significantly affected the local operations, though, on the other hand, GM Korea’s production has been declining for quite some time now. Last year, for instance, its sales dropped no less than 36 percent.
On the other hand, the struggle to deal with the wrath of the chip shortage isn’t something new for General Motors. The company has been trying to minimize the impact on its manufacturing operations at its domestic plants as well, but more often than not, the whole thing came down to temporary production halts and selling vehicles without certain non-critical systems.
Back in February, General Motors described 2022 as the year of recovery in terms of chip inventory, as the company expected the semiconductor market to improve substantially both in the United States and in China.
However, the industry outlook isn’t necessarily very optimistic right now, as chipmakers are now struggling with additional problems that could eventually impact their production capacity as well.
China has recently enforced a new round of lockdowns and restrictions, while the war in Ukraine is causing shortages for various components, including neon, the gas that’s being used for the manufacturing of chips. In this context, the 2022 chip recovery is still uncertain right now, not just for GM but for the entire industry as well.
Furthermore, the No. 2 Bupyeong plant will relocate no less than 1,200 workers, with the transfers to be complete by the end of the year to No. 1 and Changwon factories.
Needless to say, these decisions are the result of a very constrained chip inventory that has significantly affected the local operations, though, on the other hand, GM Korea’s production has been declining for quite some time now. Last year, for instance, its sales dropped no less than 36 percent.
On the other hand, the struggle to deal with the wrath of the chip shortage isn’t something new for General Motors. The company has been trying to minimize the impact on its manufacturing operations at its domestic plants as well, but more often than not, the whole thing came down to temporary production halts and selling vehicles without certain non-critical systems.
Back in February, General Motors described 2022 as the year of recovery in terms of chip inventory, as the company expected the semiconductor market to improve substantially both in the United States and in China.
However, the industry outlook isn’t necessarily very optimistic right now, as chipmakers are now struggling with additional problems that could eventually impact their production capacity as well.
China has recently enforced a new round of lockdowns and restrictions, while the war in Ukraine is causing shortages for various components, including neon, the gas that’s being used for the manufacturing of chips. In this context, the 2022 chip recovery is still uncertain right now, not just for GM but for the entire industry as well.
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