Investing.com – Ford (NYSE:F) stock and General Motors stock (NYSE:GM) traded a tad lower in Friday’s premarket following the companies’ decision to cut production, as shortages of chips continue to play havoc with their targets.
GM on Thursday said it is idling its two main pickup plants, in Silao, Mexico, and Indiana. Production at three other factories is also being suspended for a couple of weeks. The decision will affect production of GMC Sierra pickups, Chevrolet Silverados and Chevy Traverse.
Ford will not make pickups at its Kansas City plant for the next two weeks. Shifts will be cut at two truck plants in Michigan and Kentucky.
The announcements illustrate how the shortage of chips has reached a level where automakers are forced to cut production of even their most profitable models. Earlier in the year, they had stressed that they would be able to continue making SUVs and pickups without too much ado.
The crisis has deepened as unending waves of the pandemic have hit Asian markets, where most of the manufacturing happens.
Automakers have had to compete for chips with gadget- and household appliance makers, which have grabbed a bigger share of consumer spending resources in a locked-down world.
The shortage has affected more than just U.S. carmakers. Toyota and Volkswagen (DE:VOWG_p), the two largest carmakers in the world, have also curtailed production.