According to a report published by Reuters, General Motors Co. (NYSE: GM) will halt production at its assembly plant in Indiana for two weeks, starting April 4, due to the shortage of semiconductor chips.
The company makes pickup trucks GMC Sierra 1500 and Chevrolet Silverado 1500 at the Fort Wayne plant.
The Detroit-based automaker said, “There is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward.”
This is the first time since August last year that the company has stopped full-size truck production because of semiconductor-related issues.
GM added that there has been “better consistency in semiconductor supply through the first quarter compared to last year as a whole. This has translated into an improvement in production and deliveries during the first three months of the year.”
Last week, Wolfe Research analyst Rod Lache maintained a Buy rating on the stock and raised the price target to $70 from $67 (60.4% upside potential).
After GM acquired Softbank’s stake in autonomous vehicle firm Cruise, Lache said, “Until now, GM’s options for retaining control and exclusivity of Cruise were somewhat limited. However, GM reset the table by buying out Softbank’s stake, which will ultimately raise its stake in Cruise to over 80%.”
Additionally, he expects Cruise’s self-driving system to give GM a competitive advantage over other vehicles.
Overall, the stock has a Strong Buy consensus rating based on 12 Buys and four Holds. GM’s average price target of $73.44 implies 68.3% upside potential. Shares have lost 28.6% year-to-date.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into GM’s performance.
According to the tool, compared to the previous year, GM’s website traffic registered a nearly 5% decline in global visits in February. Moreover, the website traffic has decreased 28.1% year-to-date against the same period last year.
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