Ford Motor Co (NYSE: F) and General Motors Co (NYSE: GM) are going to suspend production next week at a Michigan plant, Reuters reported on Thursday, citing the companies.
What Happened: Ford will pause production at its Flat Rock Assembly Plant next week, while GM will do so at its Lansing Grand River plant.
Dearborn, Michigan-based Ford’s production suspension is due to parts shortages, while GM said its halt was not related to a chip crunch, Reuters reported.
Both Ford and GM did not respond to Benzinga’s request for comment outside business hours.
Ford builds its Mustang at Flat Rock. GM makes its Cadillac CT4, Cadillac CT5, and Chevrolet Camaro at Lansing Grand River.
See Also: Here's Why Some Used Cars From Ford And GM Are Now More Expensive Than New Models
Why It Matters: The lingering semiconductor shortages have roiled global automotive supply chains, forcing automakers to halt production from time to time. The U.S. auto industry is already grappling with historically low inventory levels at dealerships.
Russia’s invasion of Ukraine has further aggravated the supply chain pain for some automotive manufacturers.
Ford last month warned chip shortages would lead to a decline in vehicle volumes in the current quarter. Both legacy players have been undertaking producing halts every now and then.
Price Action: Ford stock closed 2.08% lower at $16.9 a share on Thursday while GM closed 3.3% lower at $43.7 a share.
