General Motors (GM) shares eased on Wednesday after the Detroit auto titan said it was extending downtime at three North American plants because of a semiconductor shortage.
“Despite our mitigation efforts, GM previously announced downtime on all production shifts through mid-March at: Fairfax in Kansas, CAMI in Canada and San Luis Potosi in Mexico,” the company said in a statement.
“With today’s announcement, we are extending downtime at San Luis Potosi through the end of March, and at Fairfax and CAMI to at least mid-April. Additionally, GM’s Gravatai plant in Brazil will take downtime in April and May.”
The company said it isn’t taking downtime or reducing shifts at any of its truck plants.
GM recently traded at $53.74, down 0.7%. It has soared 74% over the past six months amid investor enthusiasm with its business model and execution.
In other GM news, its majority-owned autonomous vehicle company Cruise is negotiating to buy Voyage, an autonomous technology startup active in retirement communities, sources told Bloomberg. The talks are in an advanced stage but no deal is imminent, they said.
Morningstar analyst David Whiston puts fair value for GM at $59.
GM "vehicles are of the best quality and design in decades,” he wrote last month.
“The company is already a leader in trucks, so a competitive lineup in all segments, combined with a much smaller cost base, says to us that GM is starting to realize the scale to match its size.”