GM announces temporary layoffs at CAMI plant amid worldwide chip shortage

GM 2

General Motors says its CAMI plant in Ontario will be idle for a week as a worldwide shortage of computer chips plagues the auto industry.

GM says the measure affects all shifts next week in the plant in Ingersoll, Ont., located about 30 kilometres east of London.

Local union workers have been informed of a temporary layoff at the plant from Feb. 8 to 13, and GM says about 1,500 affected hourly employees will be eligible for layoff benefits.

The automaker says North American plants in Kansas and Mexico will also have downtime, and a plant in South Korea will move to half capacity as the semiconductor shortage slows down the assembly line.

A report from AutoForecast Solutions last month said that the increased demand for chips in phones and gaming systems has made it hard for automakers to get semiconductors, leading to production delays in China that spread through plants in France, Germany, Italy, Portugal, Spain, and the United Kingdom so far.

GM says it hopes to make up for the downtime at the CAMI plant, where the company announced last month it would spend $1 billion revamping the Ingersoll location to produce electric commercial delivery vans.