GM Indiana truck plant to close for 2 weeks to reduce supplies

DETROIT, Michigan: General Motors has said that due to its inventory starting to outweigh demand with the easing of supply-chain snags, it will halt production at its Fort Wayne Assembly truck plant in Indiana for two weeks beginning 27th March.

The Indiana facility builds full-size trucks, including Chevrolet Silverado and GMC Sierra pickups.

After a two-year chip supply shortage that caused US automakers to struggle to keep pace with demand, GM’s decision to cut production of its highly-profitable pickup trucks reflects a shift in existing conditions.

"GM probably is trying to maintain pricing power with this move, but it’s also contradictory to what they have been saying for a while recently, that demand remains very strong," said Morningstar analyst David Whiston, as reported by Reuters.

Although inventories of new vehicles have increased in recent weeks, rising interest rates and high vehicle prices could also stifle demand.

In a statement, GM said that while demand remained "fairly consistent," its production rose over the past month, causing an increase in inventory.

"It is disappointing to see, given the overall industry does not have enough inventory, it does raise concerns that demand is slowing either due to inflation or another macro headwind," Whiston said.

Semiconductor chip shortages caused GM’s truck plant to idle for two weeks in 2022, when it sold 1.2 million trucks in the US.