Chip shortage forces GM to keep 3 plants in U.S., Mexico, Canada closed

Feb. 9 (UPI) -- General Motors said Tuesday that three of its automotive plants in North America will remain closed until at least March due to a worldwide shortage of semiconductor chips.

The affected plants are located in Kansas, Mexico and Canada and assemble GM's Chevrolet Malibu, Buick Encore, Cadillac XT4, GMC Terrain and Chevrolet's Equinox and Trax crossover vehicles.

Before Tuesday's announcement, the plants were expected to reopen sometime next week.

The automaker said a fourth factory in South Korea will run at half-capacity starting next week due to the chip shortage.

"Semiconductor supply remains an issue that is facing the entire industry," GM said in a statement.

"Our supply chain organization is working closely with our supply base to find solutions."

Semiconductors are used for a range of auto electronics, from powertrain control systems to advanced safety systems and in-car entertainment.

Cox Automotive said the shortage of chips is affecting dozens of auto models in the United States, but it's not expected to seriously disrupt sales.

Other automakers like Ford, Volkswagen and Toyota have also reduced production in recent weeks due to the shortage.