Ford and General Motors are halting vehicle production at two plants.
There is still a lack of chips and components for automotive production, therefore several factories have been forced to stop production.
The chip scarcity has been a problem for some time, and the situation has been exacerbated by the conflict in Ukraine and the emergence of a new coronavirus outbreak in China. Ford and General Motors, the latest victims of market shortages, will be forced to temporarily suspend operations at their two factories.
There will be no more Mustang models made in Flat Rock Assembly Plant in Michigan, Ford has said. Other North American factories will continue to operate normally, at least for now. Chip shortages are expected to reduce vehicle production this quarter, according to a statement from the American carmaker last month. There was also a one-week interruption in F-150 pickup production in Kansas because of the same issue.
This plant, which produces the Cadillac GT4, Cadillac CT5, and Chevrolet Camaro, will be temporarily shut down by General Motors. A dearth of chips may have caused Ford to suspend production, but that hasn't been announced by GM, which said it would temporarily stop operations at the factory owing to a lack of parts, but not because of a lack of chips.
Last Monday, GM said that manufacturing at an Indiana plant will be suspended for two weeks because the company couldn't get enough chips.
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