General Motors (General Motors) CEO Mary Barra (Mary Barra) said on Friday, Sept. 17, that the company plans to adjust its supply chain in response to the ongoing semiconductor chip crisis, which has forced the company to slash production.
"We are going to make some pretty significant changes to our supply chain," Barra said in an online interview. We are already delving deeper into the tiered supply base, because GM usually doesn't buy chips (directly), but from our suppliers. But now we are establishing a direct relationship with the manufacturer. "
Next week, the White House and the U.S. Department of Commerce plan to hold a meeting on the chip crisis. The chip crisis has caused global carmakers to cut production. General Motors (GM) said on Thursday that it would extend the suspension of production at an assembly plant in Michigan until at least Oct. 15 after a recall of Chevrolet Bolt electric vehicles due to battery problems.
GM said it was cutting production at six other North American assembly plants because of a continuing shortage of semiconductor chips. Stellantis NV, the world's fourth-largest carmaker, said this week that it would cut extra production at three factories in the US and Canada because of chip shortages.
Barra said Friday that the problem is "solvable, but it will take some time." Some new GM cars are said to use 30% more chips than others.
"as customer demand changes, we need more and more semiconductors," Barra said, adding that GM is looking for short -, medium-and long-term solutions.
Last week, Paul Jacobson (Paul Jacobson), GM's chief financial officer, reiterated the company's profit outlook for 2021 and said the company expected a "more stable year" for semiconductor supply in 2022.
Jacobson warned that GM's wholesale shipments could fall by 200000 in the third quarter because of chip shortages, while GM moved production to the second quarter to manage semiconductor supplies.