According to a report by Reuters, multinational automotive maker General Motors (GM) plans to cut production at eight of its assembly plants in North America in September due to the shortage of semiconductor chips.
The company will stop production at its Silao plant in Mexico and Fort Wayne plant in Indiana next week. Both of these plants manufacture pickup trucks. Furthermore, starting September 6, General Motors plans to halt production at its plant in Wentzville, Missouri, for a period of two weeks. This plant makes full-size vans and midsize trucks.
The automaker also plans to stop production at San Luis Potosi Assembly in Mexico and the CAMI Assembly in Canada for two additional weeks. It manufactures the Equinox SUV at these plants. Moreover, General Motors will halt production at its Lansing Delta Township plant for two additional weeks. The company builds the Buick Enclave and Chevrolet Traverse at this plant.
The company will cut production at its Spring Hill Tennessee plant, where it manufactures Cadillac XT6, Cadillac XT5 and GMC Acadia, for two weeks. Its plant in Ramos, Mexico, will not manufacture Blazer for two additional weeks, and Equinox during the week of September 27. General Motors stopped the production of Equinox on August 16.
The automaker plans to ship and repair unfinished vehicles from several of its plants, where production has been halted, including Silao and Fort Wayne. (See General Motors stock chart on TipRanks)
Last month, Jefferies analyst Philippe Houchois maintained a Hold rating on the stock but reduced the price target to $53 from $68 (8.3% upside potential).
In a research note to investors, the analyst said, “GM has led the industry for several years on strategic thinking with its vision of zero emissions, zero accidents and zero congestion, and while the company’s vision remains compelling, it is no longer unique based on recent peers’ communication.”
Overall, the stock has a Strong Buy consensus rating based on 14 Buys and 1 Hold. The average General Motors price target of $73.27 implies nearly 50% upside potential. The company’s shares have gained 66% over the past year.
According to TipRanks’ Smart Score rating system, General Motors scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.
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