Chevrolet Bolt Aftermath

• Published date: 21 September 2021
• Subject Matter: Accounting and Audit, Corporate/Commercial Law, Transport, Accounting Standards, Corporate and Company Law, Rail, Road & Cycling
• Law Firm: Crowe MacKay LLP
• Author: Crowe MacKay LLP

CHEVROLET BOLT AFTERMATH

General Motors Co said on Thursday it will extend a shutdown of a Michigan assembly plant by two weeks in the aftermath of a new recall of its Chevrolet Bolt electric vehicles over battery issues. The largest U.S. automaker said the extension of the production halt at its Orion Assembly plant that will go through at least Sept. 24 was "a result of a battery pack shortage" related to the recall that followed reports of 10 battery fires. GM said it will not resume Bolt production or sales until it is satisfied that the recall remedy will address the fire risk issue.

Source: Reuters

CHIPS JUST KEEP IMPACTING PRODUCTION AND A BIT OF HOPE

Toyota Cuts Output Again on Shortage of Chips, Parts

Toyota Motor Corp. will slash global production again next month - by 330,000 units - as the pandemic and global shortage of automotive microchips continue to bite. The total hit represents a 40 percent cutback from Toyota's original October production plan. In announcing the reversal on Friday, Toyota said it will also take a bigger hit than expected in September. Toyota expects to lose another 70,000 units this month. That adjustment comes on top of an August announcement, when Toyota warned it would lose 360,000 vehicles of output globally in September, including some 80,000 units in North America.

Source: Automotive News

Volkswagen Says Chip Crisis Won't Ease Until Second Half of 2022

The head of Volkswagen AG's Americas business doesn't see U.S. auto production returning to normal levels until the second half of 2022 following COVID-19 outbreaks in Malaysia that brought a fresh round of supply chain headaches. A global semiconductor shortfall has cut auto production worldwide and left showrooms with fewer models to sell, even as the pandemic triggered a surge in demand. Volkswagen was forced to idle production of the Taos and Tiguan sport utility vehicles at its Puebla, Mexico, plant this summer, and it's been harvesting chips from the slower-selling Passat sedan to feed production of the more-lucrative Atlas SUV, which is made in Chattanooga. It's also preparing the Tennessee plant to produce the ID.4, its debut electric SUV, next June.

Source: Bloomberg

More Stellantis shutdowns

Stellantis has extended shutdowns at its Jeep Cherokee plant in Belvidere, Ill., and its minivan plant in Windsor, Ontario, due to the ongoing global shortage of semiconductors, according to the company. The plants, which will be down the weeks of Sept. 13 and Sept. 20, were previously idled Aug. 30 and Sept. 6 for the same reason. Both factories have had significant downtime this year. The shutdown at Windsor was confirmed by the union that represents hourly workers there.

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