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.”
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Comments
Big deal! Unless it has changed ,they give you the time extension but no increase on the allowed mileage!
They don’t decrease the residual value either, so it works out.
If you’re getting into another GM vehicle, they’re not going to charge you for excess miles. Unless you’re way over in the first place and then wth are you leading in the first place.
Actually, under this current extension program GMF will give you 6 months worth of mileage provided you lease or purchase again with GMF. So you are incorrect.
When I had my Escalade on order, GM financial made it clear, there would be no increase in mileage allowed! Really after months of not knowing when the vehicle might ship, cancelled Escalade order and special ordered a X5M50i. No regrets!
I had no desire getting an Escalade two months before next years model arrive!
Nobody will be getting a new car or truck for the 2021 model year if they order it today, unless they take delivery of a vehicle already set of the next two weeks of production or buy it off the dealers lot. Fleet orders for GM trucks in Canada were cut off a few weeks ago. The only advantage to ordering a new vehicle to spec now, is that when you get delivery of the 2022 model, GM will give you price protection and similar discounts. Order it and wait, expect delivery of your new wheels in August or September as a next year’s model. Used truck prices will be going up both at dealer auctions and on dealer lots once news of today’s fire at the chip factory leaks out…oh, you didn’t hear about that??? Yup, no chips for anyone, anywhere for a few weeks. BBC news is reporting it.
This was not true in my case. GM was willing to extend my lease for up to 6 months but would not extend my miles…even though I was willing to order a new Escalade and wait for it to come in. GM financial said they absolutely would not allow me any extra miles and the dealer had to eat my miles. The dealer said they would not do that either! Even though I am disgusted by GM’s lack of customer service for an issue that was not of my making (meaning…I was ready to trade my SUV in for a new one…but they did not have a new one to give me), and I will never lease or buy a GM ever again (after doing so 4 times over 12 years), they ended up doing me a favor. My residual value was really low, so we bought the lease out and then made 12k in a trade in at another dealership!
Im looking fir a new truck.cause my lease is going to expire .am I elegable tor extension?