Ford and General Motors halt production at two Michigan plants due to parts shortages

March 31 (Reuters) – Ford Motor Company (FN)and General Motors (GM.N) The two companies said separately on Thursday that they would each halt production next week at a plant in Michigan due to a parts shortage.

US automaker Ford, No. 2, said it will suspend production at its Flat Rock assembly plant next week, where it makes the Mustang, due to a global semiconductor shortage.

GM has said that due to a temporary parts shortage, it will cancel production next week at its Lansing Grand River complex, where it makes the Cadillac CT4, Cadillac CT5 and Chevrolet Camaro. GM said the production halt was not related to the chips, but gave no other details.

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The auto industry is grappling with a global chip shortage caused by the COVID-19 pandemic, forcing companies to cut production, although higher auto prices have partly offset the financial impact.

Ford warned last month that a shortage of chips could lead to lower car volumes in the current quarter. Read more Last month, Ford halted production at the Kansas City assembly plant that makes F-150 pickups for a week due to a lack of chips. Read more

Ford, based in Dearborn, Michigan, said production at its other North American plants will continue as usual.

GM said last week it would halt production for two weeks at an assembly plant in Fort Wayne, Indiana, which makes Chevrolet Silverado 1500 pickup trucks and GMC Sierra 1500, starting April 4, due to a shortage of semiconductor chips.

Additional reporting by Kanaki Deka in Bengaluru and David Shepardson in Washington. Editing by Vinay Dwivedi and Leslie Adler

Our criteria: Thomson Reuters Trust Principles.

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