GM may be forced to suspend operations due to parts shortage

Article by Christian Andrei, on April 21, 2011

General Motors may have to suspend operations at some of its assembly plants due to the shortages of auto parts, the company disclosed in a statement. The company also mentioned that its car production "has been impacted by the events in Japan." According to GM’s statement in its online portal, it is anticipating necessary adjustments in its plants from anywhere around the globe.

Such adjustments may include temporarily suspending production, optimizing the utilization of vehicle components that are short in supply or will be in shortage, and modifying manufacturing schedules.

The company did not specifically identify which facilities were impacted or which components might be in short supply. Despite the situation, the company is confident that the events in Japan have no material impact on its results for the entire year.

The disaster that hit Japan last March has disrupted operations of automakers from around the world. Analysts have previously forecasted that shortages of computer chips and other vehicle parts stemming from the March disaster would affect U.S.-based production beginning late April or May.

In fact, Honda and Toyota, among other carmakers, have shut down plants or greatly reduced production in Japan due to component shortages. Also, Honda and Toyota were also forced to reduce production in North America.

Topics: gm, production

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