GM Plans ‘Substantial Shifts’ in Supply Chain as Chip Woes Last

  • Supply shortages to last ‘a little longer,’ says CEO Barra
  • Company seeks long-term solution in response to rising demand
Chip Shortage Hits Automakers
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General Motors Co. is planning to revamp its supply chain as the pandemic-triggered chip shortage and rising demand for chip-intensive vehicles have demonstrated the need for an overhaul.

The Detroit-based carmaker will make “substantial shifts” in its supply chain, chief executive officer Mary Barra said Friday in a live-streamed discussion with Delta Air Lines Inc. CEO Ed Bastian. While GM generally doesn’t buy chips directly, the company is now “building direct relationships” with manufacturers.