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Reports: GM pausing most full-size pickup production in US due to chip shortage

A global semiconductor chip shortage has forced most automakers to halt production at times, creating shortages and driving up demand and prices.

General Motors will put a hold on most of its full-size pickup production in the U.S. and Mexico due to a continuing global shortage of semiconductor chips, according to multiple reports.

Plants in Flint, Michigan, Fort Wayne, Indiana, and Mexico that produce the Chevrolet Silverado and GMC Sierra will be affected, CNBC reports. Regular production is expected to resume at all those plants Aug. 2, according to a notice to union members obtained by the Detroit Free Press.

GM said last week it would have to idle four North American plants that build midsize SUVs, the Free Press also reported. That pause started July 19 and was expected to last two weeks. The chip shortage was also blamed for that.

The CEO of Stellantis, the fourth-largest automaker in the world, said this week the shortage will easily drag into 2022. Carlos Tavares doesn't see enough signs that chip makers in Asia are increasing semiconductor production that will come to the west.

The shortage has forced most automakers to halt production at times, creating shortages and driving up demand and prices. The average cost of a new vehicle in the U.S. hit a record of over $42,000 in June, according to Kelley Blue Book.

Most automakers, including Stellantis, have diverted chips to high-margin and high-demand models such as pickup trucks and large SUVs.