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.
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 Volkswagen, Ford, 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.
Real reason bosses want employers back in the office
As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.
The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.
Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.
This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured
Businesses cash in on Black Friday sales
Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.
Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.
The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.
Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.
Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured
Australian inflation figure finally starts with a 4
Australia’s October inflation figures have surprised economists, as consumer prices rose at a slower pace than anticipated.
This slowdown was primarily attributed to a significant drop in goods prices, contributing to the nation’s subdued economic climate.
The Consumer Price Index (CPI) for October indicated a modest 0.4% increase, falling short of the 0.7% forecasted by analysts. On an annual basis, inflation stood at 2.1%, below the Reserve Bank of Australia’s target range of 2-3%. This unexpected deceleration is likely to affect the country’s monetary policy decisions in the near future.
Goods prices, including essential items like fuel and food, recorded a notable decrease of 0.8%, mainly due to supply chain disruptions and global economic uncertainties. Meanwhile, services prices continued to rise, albeit at a slower rate, driven by higher wages in some sectors.
This unexpected dip in inflation raises questions about the overall health of the Australian economy and the central bank’s strategies to combat it. Policymakers now face the challenge of balancing economic growth with the need to manage inflation effectively. #ticker today #featured
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