General Motors has halted production at their Tonawanda, New York engine plant, due to a parts shortage that has affected another factory in Louisiana.
The New York plant builds engines for the Chevrolet Colorado and GMC Canyon, which are assembled at the Shreveport, Louisiana plant. While GM has acknowledged that the closure is due to an issue with Japanese parts, GM hasn’t specified what components are affected.
Of the 623 workers at the plant, 59 have been laid off due to the shortage. Some have suspected that GM is diverting the components to more profitable vehicles, as it fears an extreme disruption to its supply chain. GM plants in Spain and Germany have also been closed due to the shortage.
[Source: USA Today]