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General Motors is once again extending production suspended at three plants due to semiconductor shortages

The US automotive group General Motors (GM) announced on Wednesday that it will resume production suspended at three plants due to a semiconductor shortage.

In early February, GM announced that production would be temporarily suspended at plants in the United States, Canada and Mexico, but later the production suspension was extended until mid-March.

The company said on Wednesday that the suspension of production at the US and Canadian plants will be extended at least until mid-April, and at the Mexican plant – until the end of March.

GM also said it plans to reduce production at its plant in Brazil in April and May.

The chip deficit has been caused by a significant increase in demand for consumer electronics during the coronavirus pandemic, making it difficult for semiconductor manufacturers to produce the required volume.

For this reason, several other automakers, including Volkswagen, Daimler, Fiat Chrysler, Toyota, Nissan and Honda, have previously warned of production problems.

Market research firm IHS Markit predicts that the problem could be the biggest disruption in China, where car production could fall by 250,000 units in the first quarter.

Meanwhile, production in Europe could fall by 100,000 cars.

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