Due to missing parts, GM, Ford and Chrysler had to shut down plants in the U.S. and Canda, or put them on half shifts for the second day, Reuters reports.
- GM’s Lansing Grand River plant in Michigan is shut down, and six other plants have shortened or suspended shifts
- Ford suspended production early at their Oakville assembly plant in Ontario. Some of their plants in Canada and the U.S. missed production earlier, he said.
- Chrysler factories in Toledo, Ohio, and Brampton, Ontario, were shut down this morning to resume production later in the day.
As reason for the temporary shutdowns, winter storms were cited that stranded trucks and disrupted delivery. However, the true reasons run deeper:
- There is an industry-wide constraint for parts. Carmageddon has left many parts makers bankrupt and closed. Surviving ones had scaled down. Now the survivors are swamped.
- The fragile just-in-time system is easily impacted by force majeure in the best of times. During shortages, a snowflake can cause a crisis.
- Demand for certain car segments and makes is shifting quickly as the market reorients. Sudden demand often outruns supply, especially when lean production has the factory starving for parts.
But hey, missing parts is a better problem than missing customers.