The auto industry is grappling with a worldwide shortage in microchips at the moment, curtailing production as microchip supplies dwindle. Now, it’s estimated that nearly 60,000 GM vehicles have been cut from the North American production schedule as a result of the shortage.
According to global automotive forecasting company AutoForecast Solutions, the chip shortage has resulted in production losses approximating some 56,600 GM vehicles, with at least six North American GM production facilities affected.
These include plants in Michigan, Kansas, Kentucky, Mexico, and Canada. The heaviest impacted facility is San Luis Potosi in Mexico, where an estimated 19,500 GM vehicles were reported to have been cut due to the chip shortage. The GM facility in Fairfax, Kansas has reportedly cut 14,800 units from the schedule, while the facility in Ingersoll, Ontario has cut a further 10,900 units.
Units have also been cut from the Bowling Green, Kentucky facility, the exclusive producer of the Chevrolet Corvette.
| Facility | Production Time Lost | Estimated Units Lost | Vehicles |
|---|---|---|---|
| Orion Township, Michigan | 1 week in February | 1,200 | Chevrolet Bolt |
| Ramos Arizpe, Mexico | 2 weeks in February | 8,200 | Chevrolet Blazer, Chevrolet Equinox |
| Bowling Green, Kentucky | 2 weeks in February | 2,000 | Chevrolet Corvette |
| San Luis Potosi, Mexico | February, March | 19,500 | Chevrolet Equinox, Chevrolet Onix, GMC Terrain |
| Ingersoll, Ontario | February, March | 10,900 | Chevrolet Equinox |
| Fairfax, Kansas | February, March | 14,800 | Cadillac XT4, Chevrolet Malibu |
- Data courtesy of AutoForecast Solutions
AutoForecast Solutions estimates that these numbers will increase going forward.
Critically, these numbers don’t include production cuts outside of North America. In a statement earlier this month, GM indicated that production at its Bupyeong 2 assembly plant in South Korea would also operate below capacity due to the chip shortage.
2021 Trailblazer on the line at GM’s Bupyeong Plant
“Semiconductor supply for the global auto industry remains fluid,” GM said in a statement earlier in February. “Our supply chain organization is working closely with our supply base to find solutions for our supplier’s semiconductor requirements and to mitigate impacts on GM.”
In a statement last week, GM CEO Mary Barra said that the chip shortage would not affect production of GM’s highly profitable full-size SUV and pickup models.
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Comments
FORD is having the same problem and Toyota employees got 5 days off due to the shortage
I’ve had an eBike pushed out 4 months and a solar generator pushed out 7 months. Not just semiconductors, but MLCs and battery cells among others.
The real question is will this delay introductions of other new products as well delay the EV products if this keep going on?
Yes it can hopefully the supply companies can get up to speed and it want
They should consider canceling the 2021 Terrain Denali at this point. No 2.0t and now a lengthy production delay.
And we wonder why dealer inventory sucks right now. I hope they get this solved quickly.
It’s majorly effecting the law enforcement sector as they are unable to deliver cars. Which in turn is effecting the small businesses that actually do the final up fitting on the vehicles.
I have been waiting since 12/8 for my XT6 that been accepted without any concerns? Still no word when I will get it?? Ron
I feel very sorry for all these employees laid off BUT GOOD that manufacturer for relying on parts from other countries instead of producing parts in AMERICA
TomG. You comment makes no sense. America is too globally dependent. It causes layoffs and shortages that shouldn’t happen.
“DONT PEE ON MY BOOT AND TELL ME IT IS RAINING!”
I feel that GM would only have half the problem if their CEO wasnt Mary Barra. Frankly I dont think she can run a company.
Yeah Tim, I” m sure your qualified to make that judgement call.
That’s why I made it
HOW DID MARY BARRA CAUSE THE CHIP SHORTAGE ?
Mary Barra is the best CEO GM has had since the 50s, 60s. She has transformed and revitalized GM by getting rid of the dogs like the segments in Europe, Australia, while forging ahead in new areas like Cruise and EVs. GM is the most profitable of the what use to be called the big three domestics and has an excellent current vehicle lineup. Compared to the first decade of the 2000s GM is now a formidable world class competitor. What competitor in the world market has a state of the art sports car—otherwise known as the Corvette— that sells well equipped for $65-$70k and that outperforms sports cars made in Japan and Europe that cost twice as much or more!
You mean she went for the quick and easy solution for a problem that GM shouldn’t have had, that reduced GM’s global footprint and long-term potential. Furthermore, a well equipped Corvette no longer sales for 60-70K but now tops 100,000 for a base model! Top that with GM touting the Vette selling out, when 30% of the model year supply was available for sale on AutoTrader, and volume being less than 1/4th of previous years. Add in 0-0-0 relying SOLELY on computers to achieve, and GM is currently setting itself up for failure!
It may be one of the biggest automakers now but that’ll probably change in not very long. One example where they could improve a lot on is the Savanna Van. Instead of being the only one to make this old style van, they should be making a van like the Ford Transit. Even if the old style van has good sales now, more and more people are turning to Van’s like the Mercedes Sprinter and Ford Transit. They can still make the Savanna but they should definitely be making a different one as well. For one, if a someone buys a Transit for a passenger van, they’ll absolutely never go back to one of them old style vans because of the comfort alone. That is just one example, there’s lots more.
State of the art, like the hybrid NSX? Maybe GM will eventually jam an electric motor in the front since they are the leaders in electrification. Then we can compare prices and technology.
The 50s and 60s for GM were the last vestiges of the brilliant system that made the company what it was before it became the poster child for corporate ignorance and playing catchup, pickup trucks and advertising, bailouts and layoffs.
Ken, agree that Mary should be considered one of the best CEO’s of GM, but let’s not get carried away with their product line up. Market share is NOT increasing,with consistently poor anemic Cadillac sales, good but not great Chevy Silverado sales, and very questionable designs —- we need to get past the transformers concept for design. And marketing, don’t get me started. This from a 40 year GM career man in management.
i gave up on a buick envision not knowing why the dealer could not tell me why they had none. they were blessed with many chevys though. i will keep my car that i have been driving.
I guess I will pee on your Boot –I’m guessing your job is secure and don’t worry about you being let go and your position be given to someone in another country for less pay . If parts in American autos were made in America by American citizens we would not be reading such an article and there would be no part shortage . you are in minority look at the count . the end
Just bought a new 2021 Corvette coupe with the Z51 performance package with the new candy Apple paint for $68,000. GM will sell as many of these beauties at their list price and make a solid profit on each one.Other manufacturers like Porsche, NSX(Honda), Ferrari,Toyota, BMW, Mercedes, etc offer sports cars with less performance at prices over $100,000. GM now has a world class sports car the price of a loaded pickup truck—-that is quite an achievement!
On the chip shortage all other volume manufacturers have a shortage problem. Human beings do not have perfect vision when it comes to predicting the future (such as forecasting chip demand a year or two into the future) I would note that GM has found a way to maintain their pickup truck production while Ford is shutting down its F150 production. Guess MB is just to smart for the Ford bunch and others!
Finally, suggest the GM skeptics checkout the price of GM stock. The stock is up nicely since the COVID caused swoon in early 2020. The price of GM’s is the ultimate measure of MB’s performance and she has done very well to date And will continue to do so. Instead of relying on government provided credits and bs like Tesla, GM has a solid balance sheet and real profits and DIVIDENDS Gm stock has tremendous upside potential!
Yeah and in a few years they’ll be bankrupt again because they’re diving into the electric vehicle market way to fast. Almost every day I read my news feed and a new headline “GM gets sued for this and this” or even recalls. Theres so many things going wrong with their vehicles and so many people that are choosing not to sue them but they very easily could, so then they put a recall on it. My prediction is there’ll be so much going wrong with their electric vehicles, they’ll be bankrupt in no time and all because they’re going into it way to fast. Same might happen for some of the other companies but I’m just talking about GM here. I hope I’m wrong but if the past has been any indication, I wont be far out.