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GM extends vehicle production cuts into mid-March due to global chip shortage

DETROIT — General Motors said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built. GM, whose shares dipped 1% after the announcement, did not disclose the impact volumes or say which supplier and vehicle parts were affected by the chip shortage. But it said it would focus on keeping production running at plants building its highest-profit vehicles, full-size pickup trucks and SUVs. GM said it intended to make up as much lost production as possible once the shortage chip eased. "Semiconductor supply remains an issue that is facing the entire industry. GM's plan is to leverage every available semiconductor to build and ship our most popular and in-demand products," GM spokesman David Barnas said. GM said it was extending downtime at its U.S. plant in Fairfax, Kansas, its Canadian factory in Ingersoll, Ontario, and its Mexican facility in San Luis Petosi until mid-March when it would reassess the situation, he said. In addition, GM would build but leave incomplete for final assembly vehicles at Wentzville, Missouri, and its Mexican plant at Ramos Arizpe. GM vehicles affected by the idled plants include the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox, and GMC Terrain SUVs. Vehicles to be left incomplete for now included the Chevy Colorado, GMC Canyon pickups and Chevy Blazer SUV. This week, GM had said it was idling the three factories where it has now extended downtime and said it would halve production at a plant in South Korea. The chip shortage has affected many automakers, including Toyota, Volkswagen, Stellantis, Ford, Renault, Subaru, Nissan, Honda and Mazda. Asian chipmakers are rushing to boost production but say the supply gap will take many months to plug. German chipmaker Infineon said the shortage would get worse in the near term. The chip shortage is expected to cut global output in the first quarter by more than 670,000 vehicles and last into the third quarter, IHS Markit said. AutoForecast Solutions estimated total lost production this year could reach 1 million vehicles. Honda and Nissan said on Tuesday they would sell 250,000 fewer cars in total this financial year due.

Nissan Leaf sales get January jump as Chevy Volt trends downward

The cold January sales dip hit both the Nissan Leaf and the Chevy Volt last month, but when compared 2014 to 2013's first-month-of-the-year sales totals, one of the two early plug-in vehicles obviously came out on top. The top Leaf market also shifted away from Atlanta for the first time in months. Last year, the Leaf sold just 650 units in January, but it managed to move 1,252 last month, a 92.6-percent increase over 2013 but a big drop from the 2,529 sold in December 2013. Paige Presley over at Nissan told AutoblogGreen that the Leaf has now broken sales records for 11 months straight and that, "we see unique seasonality with some December pull-ahead demand based on federal and state tax incentives." The number one Leaf market also shifted away from Atlanta for the first time in months, moving back to San Francisco. That change could be short-lived. "We had some inventory constraint issues early in the month in Atlanta with end-of-year demand depleting stock," Presley said. "By the time we resolved that, the weather hampered sales." There was not as much good news on the Chevrolet front. Last month, the Volt sold 918 units, down from 1,140 in January 2013 and 2,392 in December 2013. It also marks the first time the Volt has sold in the three-digit range since January 2012, when it sold 603 copies. That string of solid months means that the plug-in hybrid has a roughly 12,000-unit lead over the EV since the two cars brought plug-in vehicles back to the mass market all the way back in December 2010. We will have our full report of January's green car sales up soon.

Fernando Alonso just misses qualifying for Indy 500 on first day

Former Formula One world champion Fernando Alonso will need a clutch run on Sunday to qualify for the Indianapolis 500 on May 26 after he failed to seal a guaranteed spot on Saturday. The Spaniard tried fives times to put his McLaren Racing Chevrolet in the top 30, but wound up one spot short. He can make the 33-car field only through a six-car shootout on Sunday that will determine the race's final three drivers. "We have another chance to be in the race," Alonso, who is seeking to make his second Indy 500 field, told IndyCar TV. The Spaniard twice got inside the top 30 but both times was bumped outside the mark, with JR Hildebrand and Graham Rahal the final two drivers to seal qualifying spots. Britain's Pippa Mann will be the only woman in the race, qualifying 30th in 227.244 mph. Race positions 10-30 were determined during the day-long qualifying with Saturday's nine fastest drivers set to return on Sunday to decide pole. Spencer Pigot, driving the Ed Carpenter Racing Chevrolet, led qualifying with a four-lap average of 230.083 mph. He was followed by 2018 winner Will Power of Australia (230.081) and Simon Pagenaud of France (229.854). The troubles for Alonso, whose top four-lap average was 227.224 mph, were exacerbated by a punctured tire in his first qualifying run. "That didn't help," Alonso told reporters. "But, obviously, our performance has been quite bad all week. Quite poor." The Spaniard crashed his Chevrolet in practice on Wednesday and missed nearly two full days of practice while a backup car was prepared. He returned on Friday. Alonso said he was worried the McLaren team was "not ready for the challenge." "We've been slow. You see Juncos Racing crashing yesterday and being ready at 6 o'clock. That's impressive," he said. "For us, we've been a little bit slow on everything." Alonso is bidding to join Graham Hill as the only drivers to achieve the 'Triple Crown of Motorsport' with an Indy 500 victory. He previously won the Monaco Grand Prix and Le Mans 24 Hours race. He also won two Formula One drivers' titles. (Reporting by Gene Cherry in Raleigh, North Carolina; Editing by Greg Stutchbury)Related Video: Motorsports Chevrolet McLaren IndyCar