General Motors made an announcement this week that will send a shockwave through the Biden administration.
Due to a shortage of chips, the auto manufacturer will be shutting down production at most of its North American plants.
The company has to dial back production and will only be making its most profitable and popular models.
Jobs Hit
The August jobs report was horrifying, falling short by almost two-thirds of estimates.
Joe Biden continues to try to put lipstick on this pig, but it is seemingly getting worse by the day.
With China again getting rattled by another COVID surge, computer chips are becoming a limited resource.
With its supply chain falling short, GM will halt production on all but its most popular models starting next week.
GM hopes this will only last a few weeks, but that is all up in the air right now if the chip shortage is not resolved.
I can’t help but go back to Donald Trump stating that he wanted to domesticate our supply chain so we would never experience shortages as we did during the early stages of this pandemic.
GM is probably just the tip of the iceberg on this front, as any industry that relies on these chips will start to feel the strain and be forced to make moves.
August’s jobs report will be nothing compared to what we see when September rolls around if they all start shutting down or limiting production.
Source: CNN
