GM COVID-19 Production Ramp Up

General Motors Co.’s ambitious plans to ramp up production of its high-profit pickup trucks is bumping up against supply-chain reality. The auto maker is facing a shortage of parts from Mexico because of separate timelines for reopening U.S. and Mexican plants. The WSJ’s Mike Colias and Ben Foldy report that the disconnect underscores the challenges the auto industry faces in restarting after a two-month shutdown under the pandemic. Mexico has been slower than the U.S. to reopen factories, with operations rebooting only gradually, and the slow flow of parts along with scant information has frustrated American importers. GM has delayed plans to roughly double output at its main U.S. pickup-truck factories because of the parts backup. Detroit auto makers derive much of their profit from those vehicles, and resuming the production is especially important to GM since its inventories were depleted by a labor walkout last fall.

– Bob

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