Connect with us

Business

General Motors shuts down North American factories temporarily

Published

on

Global automotive giant General Motors has been forced to temporarily halt production in North America, revealing closures of its factories

General Motors – the parent company of Holden, Chevrolet, GMC, Cadillac, and Buick, revealed that it was temporarily halting production at six of its North American factories as a result of the global chip shortage.

The move from GM makes it the latest major automaker to be impacted by the tight supply of computer chips.

The four GM US-based plants impacted:

Fort Wayne, Indiana; Wentzville, Missouri; Spring Hill, Tennessee; and Lansing, Michigan.

The company revealed four other factories in Mexico and Canada will also go dark for several weeks as GM works to shore up its supply of chips.

The halt in production will affect GM’s most profitable vehicles, including pickup trucks and SUVs.

“During the downtime, we will repair and ship unfinished vehicles from many impacted plants, including Fort Wayne and Silao, to dealers to help meet the strong customer demand for our products,”

a GM spokesperson said in a company statement

Impacted cars include the Chevy Silverado, Cheyenne, Traverse, Equinox, and Express; GMC Acadia, Sierra, Savana, Terrain, and Canyon; Buick Enclave; and Cadillac XT5 and XT6.

“Although the situation remains complex and very fluid, we remain confident in our team’s ability to continue finding creative solutions to minimize the impact on our highest-demand and capacity-constrained vehicles.”

This is the second time GM has had to announce temporary factory shutdowns in response to the chip shortage. The automaker, which is the largest in North America, previously idled several factories for two weeks back in April.

Of course, GM isn’t alone in feeling the pain from the global shortage of semiconductor chips, which is showing no signs of improvement. Practically every automaker has had to cut production and temporarily shut down factories in response, including VolkswagenFord, and Toyota.

Even Tesla, which makes far fewer vehicles than most of its rivals, revealed in a statement that it had to rewrite its vehicles’ software to support alternative chips.

Tesla CEO Elon Musk revealed during an earnings call that “the global chip shortage situation remains quite serious”

During a recent earnings call, GM executives wouldn’t specify how much production they expect to lose to the chip shortage.

But CEO Mary Barra said purchasing, manufacturing, engineering, and sales teams are working to divert the chips from cars and smaller SUVs to full-size pickup trucks, big SUVs, and new electric vehicles.

The company stressed that the shortage would cost $1.5 billion to $2 billion in earnings before taxes this year due to lost production.

Anthony Lucas is reporter, presenter and social media producer with ticker News. Anthony holds a Bachelor of Professional Communication, with a major in Journalism from RMIT University as well as a Diploma of Arts and Entertainment journalism from Collarts. He’s previously worked for 9 News, ONE FM Radio and Southern Cross Austerio’s Hit Radio Network. 

Business

Amazon turns to deforestation in Africa

Published

on

Amazon’s founder and CEO is no stranger to making headlines, and his latest venture is sure to turn some heads.

Bezos is looking to help reverse deforestation on 100 million acres of land in Africa by 2030.

The billionaire’s philanthropic organisation, the Bezos Earth Fund, is championing the cause and working with African Union countries to make it happen.

If successful, it would be a major win for the environment and help preserve some of Africa’s most biodiverse and threatened ecosystems.

So why is Bezos focusing on Africa?

Well, the continent is home to some of the world’s most endangered species and its ecosystems are under immense pressure from human activity.

His organisation’s efforts could help to protect these animals and their habitats, while also providing a much-needed boost to the local economy.

It comes as the Earth Fund’s CEO says richer countries are going to have to step up the support for their struggling counterparts…

Continue Reading

Business

Credit Suisse “won’t be next Lehmen Brothers”

Published

on

credit suisse

Analysts believe Credit Suisse will remain under pressure in the near term, but caution against comparisons to Lehman Brothers.

The Swiss bank’s shares briefly sank to an all-time low this week while credit default swaps hit a record high, as the market’s concerns about the bank’s future became abundantly clear.

As Credit Suisse takes steps to shore up its finances, concerns remain about its exposure to the volatile markets.

The company raised $5.3 billion from strategic investors earlier this year.

Lehman Brothers collapsed in 2008 after becoming embroiled in the subprime mortgage crisis, and analysts believe that Credit Suisse is facing similar challenges.

But some experts believe that Credit Suisse is in a stronger position than Lehman Brothers was, and that it is unlikely to face the same fate.

Credit Suisse’s shares have recovered somewhat from the previous session’s low, but are still down more than 53% on the year.

The bank’s share price is down more than 73% over the past five years, and such a dramatic plunge has led to market speculation about consolidation.

All three major credit ratings agencies — Moody’s, S&P and Fitch — now have a negative outlook on Credit Suisse.

In response, a U.S. investment research company lowered its price target for the stock to 3.50 Swiss francs per share.

Continue Reading

Business

Elon Musk’s stunning u-turn on Twitter deal

Published

on

Billionaire and Tesla CEO Elon Musk has agreed to proceed with his 44 billion dollar takeover of Twitter.

In a letter to the social media giant, Musk says he will pay the price he agreed to months ago before he tried to backflip on the deal.

This announcement comes just weeks before the two parties were due to appear in court, with Twitter execs furious over Musk’s attempt to walk away.

Musk says he intends to move ahead with the deal and, pending financing, has requested the legal fight is brought to a halt.

Twitter shares have shot through the roof off the back of this news, soaring 22 per cent before trading was paused.

In April, Musk agreed to buy the social media giant for $54.20 a share, which brings the total price to roughly 44 billion.

Taking to Twitter at the time to announce his intentions, he said he wanted to clean up the platform and champion free speech.

But of course just a few weeks later, he bailed, leaving Twitter in the lurch.

Musk claimed the network had a whole lot more fake accounts than execs were leading on… hence his decision to back away.

Twitter staunchly denied these claims and commenced legal proceedings.

But here we are back at square one and for now at least, it seems like the deal is going to happen.

Continue Reading

Trending Now

Copyright © 2022 The Ticker Company PTY LTD