General Motors said on Thursday it will halt production at its Fort Wayne Assembly truck plant in Indiana for two weeks from March 27 as inventory starts to outweigh demand with the easing of supply-chain snags.
Shares of the U.S. automaker fell 1.3% in early trade.
After two years of U.S. automakers scrambling to keep pace with demand amid a parts crunch, GM’s decision to cut production of its highly-profitable pickup trucks signals a shift in the status quo.
Analysts have warned that rising interest rates and high vehicle prices could begin to depress demand, even as inventories of new vehicles have been rising over recent weeks.
“Our production is up over the past month while demand remains fairly consistent, leading to an increase in inventory,” GM said in a statement.
Last year, its truck plant was idled for two weeks over semiconductor chip shortages.
The Indiana facility builds full-size trucks, including Chevrolet Silverado and GMC Sierra pickups.
Also Read:
While registered E2W sales accounted for 65.13 percent of total EV sales this quarter, E3W (cargo and passenger combined) accounted for a share of 30.32 percent, the report said.