General Motors is offering lease extensions to customers as the global semi-conductor shortage continues to affect the automaker’s vehicle production output.
The automaker is offering customers who are coming up on the end of their vehicle lease term the option to extend the contract if they are waiting to receive a new GM vehicle to replace it with. The lease extensions are only offered to customers whose accounts are in good standing and have a new GM vehicle ordered that has not yet been built.
According to Automotive News, GM, Ford and Stellantis have all begun offering lease extensions to certain customers that are waiting on replacement vehicles that have yet to be produced. The ongoing global semi-conductor chip shortage has hampered production output for many of the world’s major automakers, resulting in a supply shortage of certain models in North America and abroad.
GM Financial began offering the lease extensions on February 1st, AN reports, giving qualified lessees a six-month extension, with an additional six months offered at the customer’s request. Similarly, Ford buyers can request a lease extension of up to 12 months and can extend the term by a further six months if they are already in the middle of the 12-month extension. Stellantis’ deal is similar to GM, offering lessees a six months total extension if they have a new vehicle on order with the company that is delayed.
Production setbacks have been a constant theme throughout the COVID-19 pandemic – even before the global semi-conductor shortage complicated matters this year. While GM’s vehicle assembly plants have been open since last Spring, personnel and parts shortages have caused consistent delays at its plants in the United States, Mexico, Canada and throughout Asia.
In recent weeks, GM has remained focused on maintaining a healthy supply of microchips for its most popular and profit-heavy products, those being its line of full-size SUVs like the Chevy Tahoe and GMC Yukon and full-size trucks like the Chevy Silverado and GMC Sierra.
“GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including full-size trucks and SUVs for our customers,” the automaker said in a statement released earlier this month. “GM has not taken downtime or reduced shifts at any of its truck plants due to the shortage. We continue to work closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM.”