Officials from General Motors (NYSE:GM) revealed their decision to shut down the Fort Wayne Assembly Plant next week as the automaker grapples with supply issues.
GM spokesperson Jeffrey Benzing confirmed the pause will take place the week of August 28 due to a “temporary part shortage.”
The Fort Wayne plant is no stranger to temporary halts. Throughout 2020 and 2021, GM had to stop production multiple times due to the impacts of the COVID-19 pandemic and the continuous shortage of semiconductors.
Since the onset of the pandemic, supply chain challenges have been a constant problem for the automotive industry. GM had to find off-site locations to store unfinished vehicles, and the transportation of finished trucks also faced obstacles due to a shortage of both railcars and truck drivers. This situation has led to the accumulation of hundreds, or possibly even thousands, of completed pickup trucks sitting on the former Auburn auction land adjacent to I-69 in DeKalb County.
The timing of the production pause coincides with a crucial moment as UAW members are in the process of voting to decide whether to approve a potential strike. Presently, the union is engaged in negotiations with the Big 3 automotive companies, Ford (NYSE:F), Stellantis NV (NYSE:STLA), and GM, regarding a fresh contract. This existing contract is set to expire on September 14.
Shares of GM are up 1.48% in afternoon trading Wednesday.