General Motors stock slides after extending Michigan, Ohio plant closures
|Toronto Star 09 Sep 2021 at 14:51|
General Motors (GM) shares slumped lower Thursday after the carmaker extended the shutdown times of several North American plans amid the ongoing shortage in global semiconductor supplies and the recall of its Chevy Bolt battery.
General Motors said plants in Orion, Michigan would add an additional two weeks of downtime owing to a ‘batter pack shortage” linked to the recall. Plants in Lansing, Michigan, and Wentzville, Ohio will also add an another week of downtime, as will the carmaker’s assembly facility in Ramos, Mexico.
GM said the recall, which now covers 2019, 2020, 2021 and 2022 models of the Chevy Bolt, was expanded to address two manufacturing defects — a torn anode tab and folded separator — in the car’s battery cell that could increase the risk of fire. The expanded recall will cost the carmaker around $1 billion (U.S.), GM said, adding it would seek reimbursement from Korea-based battery manufacturer LG Chem Ltd.
General Motors shares were marked 2.33 per cent lower in early Thursday trading to change hands at $47.80 each.
Ford Motor Co. (F) shares were also on the move, falling 2.25 per cent to $12.73 each after unveiling 4,000 job cuts and a pre-tax charge of around $600 billion linked to the restructuring of its operations in India.