General Motors Suspends Production at SP Factory for Another Month, Affecting the Manufacturing of Tracker, Onix Joy, Onix Joy Plus, and Spin Models

Due to the Lack of Semiconductor Microchips, General Motors Suspends Operations at Its Factory in São Caetano do Sul (SP) and Operations Are Expected to Resume Only on August 26

In another decision regarding the factory in São Caetano do Sul (SP) this Tuesday (27), General Motors announced that it will extend the suspension of its activities for another 30 days due to the absence of semiconductor chips. Thus, the Chevrolet Tracker, Onix Joy, Onix Joy Plus, and Spin models will continue to be out of production.

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General Motors May Keep Factory Shut Down Until the End of August

In June of this year, GM implemented an agreement involving 400 employees, based on MP 1.045, which authorizes the suspension of factory activities in SP for 120 days and was valid until this Monday (26).

Therefore, if General Motors takes this measure, vehicle production is expected to resume only on August 26, according to statements from the president of the local metalworkers’ union, Aparecido Inácio da Silva. The automaker reported that due to the lack of components, it will be more complicated to resume activities before this date.

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GM Factory in SP Will Manufacture the New Montana

The factory in SP is also preparing for the production of the Chevrolet Montana. In a video posted on LinkedIn, General Motors reaffirms that the pickup truck is being developed and is one of the highlights of the R$ 10 billion investment cycle that will be applied in the state until the middle of the decade.

GM has not yet announced the launch date of the New Montana, but it is estimated that the model will be unveiled in 2022. General Motors is one of the automakers most affected by the semiconductor crisis.

According to a survey conducted by Auto Forecast Solutions from the U.S., the automaker will lose the production of 161,000 cars just until the end of the month, considering its three factories in São Caetano do Sul, São José dos Campos, and Gravataí. Of the three, the one that has suffered the most is the Gravataí unit, where the production of 115,000 vehicles has already been lost since its suspension in March and will extend at least until August 2.

Chip Crisis May Persist Until 2023

The semiconductor chip crisis may last two years to recover and many vehicles may be left out of Brazilian dealerships. According to Intel CEO Pat Gelsinger, who shared his opinion on the matter, the chip crisis will continue until 2023 and further stated that the biggest challenge is the delay in stabilizing these production issues.

According to the executive, at least two years will be needed for vehicle and chip production to return to normal, meaning difficulties will continue in 2022.

The São Caetano do Sul factory is one of the oldest in operation in Brazil and is also one of the most technologically advanced. The GM factory in São Caetano do Sul, which has been the birthplace of iconic models such as Monza and Opala, currently produces the Chevrolet Tracker, Onix Joy, Onix Joy Plus, and Spin models. It is worth highlighting that these models feature 4.0 industry technologies in their production.