GM’s chip strategy that keeps production running as Ford goes down

A deal with semiconductor chipmakers is keeping General Motors assembly lines in North America rolling, while Ford Motor Co. idles many of its plants for the week.

The Detroit Three automakers each face the ongoing shortage of semiconductor chips that are used in many car parts. The shortage has been crippling production across the industry since this time last year. So far Stellantis confirms its plants in North America continue to operate as normal.

Yet Ford is the only one hit by it at the moment and shutting down.

The front grille goes onto a Ford Bronco Monday, June 14, 2021, at the Ford Michigan Assembly Plant in Wayne MI.

“I couldn’t speculate about the other companies,” said Ford spokeswoman Kelli Felker. “The global semiconductor shortage continues to affect Ford’s North American plants – along with automakers and other industries around the world.”

GM and Stellantis are not immune to the chip shortage. Both saw a series of production disruptions throughout last year due to an inability to get the chip parts.

But GM is confident it will not be stopping production in the near term due to the chips shortage, spokesman David Barnas said.

Last week, CEO Mary Barra and CFO Paul Jacobson told investors at the Deutsche Bank Center in New York that GM predicts it will grow its production volume by 25% to 30% globally this year compared to last year. It has secured deals with the chipmakers in its supply chain, according to a research note on Monday from Deutsche Bank analyst Emmanuel Rosner.

Ford’s working on it

At Ford, meanwhile, production will be disrupted at six North American plants this week as it works to mitigate the impact of the unavailable chips.

“Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect,” Felker said.

The following plants were either idled or shifts reduced starting Monday: