Global chip shortage forces GM to halt production of Chevy Bolt EV & EUV crossover

Global chip shortage forces GM to halt production of Chevy Bolt EV & EUV crossover

General Motors (GM), American automobile giant headquartered in Detroit area of Michigan, has decided to halt production of the Chevy Bolt EV & EUV crossover due to shortage of semiconductor chips. The production of GM’s electric vehicles (EVs) has thus far remained unaffected by the global shortage of semiconductor ships, but the situation seems to be deteriorating as the Detroit-based manufacturer has reportedly decided to halt the production of the Chevrolet Bolt EV hatchback and Bolt EUV crossover for at least a week.

Market observers are of the view that the situation with the worldwide shortage of chips is getting progressively worse, and many manufacturers believe that there is no light at the end of the tunnel. Semiconductor chip shortage is impacting almost all automobile manufacturers and the shortage could continue well into next year (2022).

However, GM claims that the upcoming all-electric Cadillac Lyriq and GMC Hummer EV have not yet been impacted by chip shortage. But, it will all depend on what becomes of the global semiconductor chip shortage once these all-electric vehicles are ready for production. GM has plans to launch the Cadillac Lyriq and GMC Hummer EV early next year.

As part of the aforementioned production halt, GM will halt production of its certain EVs at its Michigan-based Orion Assembly Plant, which produces the Bolt EV hatchback and Bolt EUV crossover. In an internal memo, GM reportedly informed its workers that the manufacturing plant will be closed for a weeklong period, starting Monday, August 23, 2021. Production at the plant will be resumed a week later, on 30th of August.

A semiconductor chip can be described as a microchip or an integrated circuit that partially conducts electricity. It is for this very reason that this component is called a semiconductor. Demand for semiconductor chip has been on the rise as the world is switching from conventional internal combustion engines (ICEs) to electric cars. Semiconductor chips come equipped with built-in intelligence, and are being used in EVs to enhance driver assistance systems in addition to performing various tasks like sending signals to airbags. Moreover, these chips have enabled manufacturers to swap conventional ICE mechanical systems with electric systems.

However, producers of semiconductor chips have failed to meet soaring demand amid the ongoing EV revolution, and the worldwide shortage of the chips resulted in delays of a number of EV projects.