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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.

Coronavirus shakes up America's truck market: GM outselling Ford and Ram

FCA, Ford and General Motors joined the rest of the U.S. auto industry in taking heavy volume hits due to coronavirus-related shortages of both cars and customers. The saying goes that a rising tide lifts all boats; it stands to reason, then, that a falling one would have the opposite effect.  However, as we learned Thursday, the automotive market can behave in unpredictable ways. While the F-Series remained the best-selling nameplate in Q1, GM's full-size trucks are now outselling Ford's again for the first time in years, and with this upward thrust from the General, FCA's Ram was unceremoniously booted out of a hard-earned second place.  While late-March sales declines hit just about every major automaker in one way or another, the model-by-model results weren't nearly so uniform. And because the market tends to be a zero-sum game, for every winner, there generally has to be a loser.  In this case, that winner was GM, and its rise had to come at the expense of another automaker, in this case, Ford. F-Series sales dropped 13.1 percent in the first quarter of 2020, while sales of GM's full-sized Silverado and Sierra surged nearly 28% in the same period. FCA's Ram lineup managed a steady-as-she-goes 7% increase. All-in, GM finished the quarter with 197,743 full-size trucks sold to Ford's 186,562. Here's the full breakdown: Ford F-Series: 186,562  Chevrolet Silverado*: 144,734 Ram P/U: 128,805 GMC Sierra: 53,009 *includes 1,036 Medium Duty sales Things are a but murkier in the midsize segment, where the Chevy Colorado slipped 36% to just 21,430 units sold — just a few hundred better than the slow-selling Ford Ranger's Q1 numbers. The GMC Canyon experienced an almost identical slide, finishing the quarter with just 4,483 units sold. For perspective, Jeep sold more than 15,000 Gladiators and Toyota's midsize Tacoma slipped less than 8%, finishing the quarter with nearly 54,000 sales.  We suspect this discrepancy in full- and mid-size truck sales comes from shifting incentives. Ford, GM and FCA would like to keep selling bigger trucks because there's far more profit margin built into their list prices. Even with tens of thousands of dollars in manufacturer money on the hood, big trucks still make money.  Since these automakers report quarterly, we won't get another good look at these numbers until July, but if you thought that 2019 represented the new normal for U.S. auto sales, well, think again.

2023 GMC Canyon debuts August 11

Chevrolet started GM's new-generation midsize truck party with the 2023 Colorado, now GMC's about to hit the stage with the 2023 Canyon. On August 11 at 11 a.m. Eastern time, we'll see what the new generation has done for the Colorado's upscale sibling. GMC teased us with a low angle of the coming Canyon in AT4X trim April. That revealed brawnier bits like big Goodyear Wrangler tires wrapped around 17-inch beadlock-capable wheels, plastic wheel arch flares, and rock rails. The initial version of that trim will be called the AT4X with Edition 1 Package, the front view showing split headlights, a new grille, thin LEDs, and a brush bar like the unit sprouting from nose of the Colorado ZR2 Desert Boss. We're also told there will be a "higher and wider stance, which is factory lifted." The current AT4 trim gets raised one inch, and we have a feeling the AT4X will get around three inches on its tippy toes just like the Colorado ZR2. The rationalization of body styles into a single Crew Cab Short Box will make ease configurations and production. Sadly, the 2.8-liter Duramax four-cylinder diesel is all but certain to be a goner here as well. The 2.7-liter four-cylinder gas engine should slip in here as the sole engine choice in two or three outputs. There's no telling which trims will get which outputs standard, but the choices are a base tune with 237 horsepower and 259 pound-feet of torque, a middle turbocharged tune with 310 hp and 390 lb-ft, and a high-output turboed topper with 310 hp and 430 lb-ft.   The 2023 GMC Canyon AT4X with Edition 1 Package will be available to order on the same day the lineup is revealed, at which time we expect to find out what's included in the Edition 1 versions compared to the AT4X variant that will join the lineup for series production. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.