General Motors has announced it will be ramping up vehicle deliveries in the United States and Canada in the coming months as the impact of the global semiconductor shortage starts to wane.
In a statement released Thursday, GM said production of its Chevy Silverado HD and GMC Sierra HD full-size pickups “will increase by about 1,000 trucks per month beginning in mid-July as a result of production line efficiencies delivered by the team at Flint Assembly in Michigan.” Additionally, shipments of the Chevy Colorado and GMC Canyon mid-size pickups, which are built at Wentzville Assembly in Missouri, will increase by about 30,000 total units through the week of July 5 as the team completes vehicle testing on units that were being held at the plant due to semiconductor supply disruptions.
Smaller volumes of various GM vehicles held at other plants also will complete vehicle testing and ship to dealers during June and July, the automaker said, though it did not specify the make and models of these units. Some assembly plants that build GM’s most in-demand and capacity-constrained products will not take any dedicated vacation downtime this summer, either, helping to make up for production lost at the height of the semiconductor shortage.
“The global semiconductor shortage remains complex and very fluid, but the speed, agility and commitment of our team, including our dealers, has helped us find creative ways to satisfy customers,” Phil Kienle, GM vice president for North America manufacturing and labor relations. “Customer demand continues to be very strong, and GM’s engineering, supply chain and manufacturing teams have done a remarkable job maximizing production of high-demand and capacity-constrained vehicles.”
While production of in-demand models like pickup trucks and crossovers will ramp up in the coming months, GM says production at certain manufacturing facilities in North America, Asia and South America “will continue to be impacted by the global semiconductor shortage through June and July.” The automaker believes the worst of the shortage is behind it, however, and is projecting higher earnings for the second half of the year as a result.
“..the company now expects its first-half financial results to be significantly better than the first-half guidance previously provided,” GM said in a statement. “GM is optimistic about the full year and expects to share additional information during its second-quarter earnings conference call on Aug. 4.”