GM Korea said it would cut production by 50% at one of its three plants from next week due to the global shortage of semiconductors.
The announcement comes just after its US parent company, General Motors, said it was cutting production altogether next week at three plants in North America due to the component shortage: Fairfax, Kansas; Ingersoll, Ontario; and San Luis Potosi, Mexico.
Go deeper with GlobalData
The current semiconductor shortage has affected the global vehicle industry since the fourth quarter of 2020, after global electronics manufacturers failed to maintain investments during the COVID-19 pandemic at a time when electric content in vehicles continued to surge.
GM Korea said it would cut production by half at its Bupyeong No 2 plant from next week, without saying for how long.
A General Motors spokesman confirmed the company was "working closely with our suppliers to find solutions to our semiconductor requirements, to mitigate the impact on GM and GM Korea. Our focus is to keep producing our most in-demand models, particularly SUVs".
GM Korea global sales declined by 12% to 368,453 vehicles in 2020 from 417,226 units in 2019.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
