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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.

GM offering factory-backed extended warranty for Chevys, GMCs, Buicks and Cadillacs

Cars are generally more reliable than ever before. When things do go wrong, every automaker offers some form of factory warranty (in most cases at least three years and 36,000 miles, though many extend even longer), providing peace of mind to new-car buyers that many faults will be fixed at no charge to the customer. Starting today, GM is offering a new optional plan that will extend the factory warranty on all new Chevy, GMC, Buick and Cadillac products. In the past, extended warranties have been offered as dealer add-ons, with all profits from these sales going to the dealership. GM's new program can be viewed as another nail in the the looming dealership-model coffin. According to Automotive News, some dealers aren't happy to see GM cut into their business like this, saying that it helps GM far more than it does dealers. GM says the new program will help keep customers in the GM family. Customers are also more likely to visit a GM service center rather than going to an independent repair shop. Currently, new Chevy and GMC vehicles come with three-year/36,000-mile warranties. Buicks and Cadillacs are covered for 4 years or 50,000 miles. The new program extends Chevy and GMC warranties to five years or 60,000 miles. Buick and Cadillac warranties extend to six years or 70,000 miles. GM, citing IHS Markit, says most owners keep new cars for about 6.8 years, so these warranties will cover most of the length of their ownership. The extended warranty will add between $1,000 and $2,000 to the price of a vehicle, and the additional cost can be rolled into the vehicle's purchase or lease price. Unlike many dealer extensions, the factory program covers the vehicle no matter who owns it. That should help increase the car's resale value if it's sold within the covered timeframe. GM says there's no deductible and no need to file a claim form when getting warranty repairs. Additionally, dealerships can continue to sell their own extended warranties or service contracts. Related Video:

GMC Sierra AT4X reportedly on the way, nameplate could be GMC's ZR2

In 2016, GM filed an application with Mexico's Institute of Industrial Property to reserve the name AT4X, and in 2019, the automaker made the same request to the U.S. Patent and Trademark Office. Seeing that GMC's current AT4 trim replaces the former All Terrain trim used on the last-gen Sierra pickup, there have been suspicions ever since those trademark filings that GM would use the AT4X name to replace GMC's former All Terrain X trim. GM Authority reports that this is precisely what's going to happen, citing "sources familiar with the matter." The outlet even gleaned an equipment group number: 4SG for AT4X, whereas AT4 is equipment group 4SB.  The surmise is that GMC is again developing its versions of Chevrolet's dirt-clobbering pickups that wear the ZR2 name. Spy shooters caught the GMC Canyon earlier this month trotting around on Multimatic's DSSV dampers and a set of 33-inch tires like its Colorado ZR2 sibling. The Canyon already offers an AT4 trim, it's thought this beefier setup will roll into the lineup as an AT4X.  Stepping up to the half-ton league, at the end of last month Chevy released a teaser for the Silverado ZR2, which had been caught in prototype guise (pictured at top) around Detroit on at least two occasions. We've mused that the production Silverado ZR2 could take some hardcore off-roader cues from the factory-upgraded Silverado ZR2 race truck like a lifted stance, long-travel front suspension, four-leaf springs instead of three-leaf, electronic locking front and rear differentials, and a wider track. One of the production prototypes was caught on 33-inch tires, but we wouldn't be shocked to see 35-inchers on the spec sheet. That size would match the race truck and the rubber fitted to the cross-town rivals Ford Raptor and Ram 1500 TRX. A GMC Sierra AT4X would be the plusher, pricier, chrome-ier version of the ZR2. The aforementioned Multimatic shocks could also be on the docket. We'd expect the GMC Sierra AT4X to bow with the heavily updated 2022 pickup, whenever that arrives. Events around the world of late delayed the pickup, its launch now thought to happen late next year or in early 2023. Related Video: