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Chip shortage forces production cuts at GM

DETROIT — The global shortage of semiconductors has forced General Motors to further cut production at six North American factories as chip supplies seem to be growing tighter.

The shutdowns likely will crimp dealer inventory of vehicles made at the plants, but GM says it has managed to keep factories humming that make hot-selling and very profitable full-size pickup trucks and SUVs.

“GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products,” the company said Thursday in a statement.

The chip shortage has already been rippling through various markets since last summer. It has made it difficult for schools to buy enough laptops for students forced to learn from home, delayed the release of popular products such as the iPhone 12 and created scrambles to find the latest video game consoles.

But things have been getting even worse in recent weeks, particularly in the auto industry, where factories are shutting down because there aren’t enough chips to finish building vehicles that are starting to look like computers on wheels. Consumers may find themselves settling for lower-end models without as many fancy electronic features.

And it threatens to leave a big dent in the auto industry, which by some estimates stands to lose $60 billion in sales during the first half of his year.

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