General Motors said it would extend by a few weeks the closure of three North American plants because of the semiconductor shortage that is disrupting auto production around the world.
The company halted production on Monday at plants in Fairfax, Kan.; Ingersoll, Ontario; and San Luis Potosi, Mexico, and now plans to keep them idle until the middle of March, G.M. said in a statement. The automaker had originally planned for a weeklong halt.
G.M. also said two plants in Wentzville, Mo., and Ramos Arizpe, Mexico, would produce vehicles without the electronic components that use chips that are in short supply, and install the parts later.
A spokesman said the company is using the limited supply of chips for more popular cars and trucks.
The chip shortage is the result of the disruptions caused by the coronavirus pandemic. When auto plants had to close last spring because of the virus, chip-makers shifted production to consumer-electronics products such as game consoles and have struggled to restore production of auto chips fast enough to keep up with demand for new cars.
Almost every automaker has had to slow production because of shortages of critical electronics such as engine and transmission controllers.
Last week, Ford Motor said that the shortage would likely lower its pretax profit this year by $1 billion to $2.5 billion.
G.M. is expected to elaborate on the impact the shortage is having on its operations when it reports 2020 earnings on Wednesday.
President Biden will meet with top chief executives as he pushes his $1.9 trillion aid package.
President Biden is seeking to rally support for his $1.9 trillion aid package.Credit...Kevin Lamarque/Reuters
President Biden will meet with top business leaders at the White House on Tuesday as part of his push to rally support for the $1.9 trillion pandemic package being debated in Congress and his plan raise the minimum wage.
Mr. Biden, Vice President Kamala Harris and Treasury Secretary Janet Yellen will meet on Tuesday afternoon with the chief executives of Walmart, Gap, Lowe’s and JPMorgan Chase, as well as Tom Donohue, who heads the U.S. Chamber of Commerce.
The meeting is expected to focus on a range of topics related to the president’s economic plan. Mr. Biden and his top advisers are expected to discuss the administration’s proposal to raise the minimum wage to $15 an hour from $7.25, people familiar with the event have said.
The idea of an across-the-board increase to $15 an hour faces opposition from the U.S. Chamber of Commerce and at least one of the chief executives invited to the event has also urged a slower, more targeted increase. Doug McMillon of WalMart has said that he believes $7.25 is too low, but any plan should take into account “geographic differences.”
Such a move would not happen right away, if at all. Mr. Biden and Democratic leaders have already committed to not raise the wage until the pandemic has subsided. It also faces significant headway from Republicans, who say it will force small businesses to fire workers and could put some out of business.
But Mr. Biden and his allies in Congress see as a central weapon for fighting poverty and inequality.
A report by the Congressional Budget Office on Monday found evidence that both sides cited in support of their arguments: a $15 minimum wage would offer raises to 27 million people and lift 900,000 people above the poverty line, but it would also cost 1.4 million jobs, the budget office concluded.
Here are the chief executives invited to the event on Tuesday:
Jamie Dimon of JPMorgan Chase
Tom Donohue of the U.S. Chamber of Commerce
Doug McMillon of Walmart
Sonia Syngal of Gap Inc.
Marvin R. Ellison of Lowe’s Companies
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