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Fri Feb 14, 2020, 04:13 PM

Coronavirus Impact Spreads to European Auto Plant and Could Hit GM Truck Production

UPDATED 3 HOURS AGO
Michael Wayland
@MIKEWAYLAND

KEY POINTS

•Automakers working to restart manufacturing in China amid the coronavirus outbreak are trying to prevent operations elsewhere from being affected by supply shortages.

•GM confirmed Friday it is closely monitoring the supply chain for its highly profitable truck production in North America.

•Fiat Chrysler said it plans to halt operations at its factory in Serbia due to a lack of parts from China because of the coronavirus.

Automakers working to restart manufacturing in China amid the coronavirus outbreak are trying to prevent operations elsewhere from being affected by supply shortages.

General Motors confirmed Friday it is closely monitoring the supply chain for its highly profitable truck production in North America, spokesman David Barnas said in an emailed statement. He added that the automaker “does not anticipate any impact on full-size truck production at this time.”

Terry Valenzuela, president of a United Auto Workers chapter in Texas that produces GM’s full-size SUVs, told CNBC on Friday it’s possible that production there could be disrupted due to supply issues.

The comments follow a report by The Detroit Bureau, an online industry news website, that union leaders in Flint, Michigan, warned of potential parts shortages at their plant as well as the SUV plant in Texas and another truck plant in Indiana due to the coronavirus. A social media post, which appears to have been taken down, reportedly said the parts shortage, including decal applications, could begin as early as this month with wider impact occurring if the issues progress into March.

“We continue to monitor our supply chain and are in close communications with our Tier One suppliers to attempt to mitigate risks to production in North America,” Barnas said.

Vehicles that could be impacted if the plants were to be idled include the Chevrolet Silverado and GMC Sierra pickup trucks and Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon and Cadillac Escalade SUVs.

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https://www.cnbc.com/2020/02/14/coronavirus-impact-to-potentially-disrupt-gm-truck-production.html

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