General Motors has announced that production of the Chevy Traverse and Buick Enclave at the GM Lansing Delta Township Assembly plant in Michigan has been pushed back to September 6th. The Lansing Delta Township Assembly plant was originally scheduled to come back online on Monday, August 23rd, but due to the ongoing global microchip shortage, that restart date has been delayed by two weeks. The Lansing Delta Township facility has been offline since July 19th.
Per a recent report from Automotive News, the Chevy Traverse and Buick Enclave are not the only General Motors models facing new production losses as a result of the continuing microchip shortage. In addition to extended downtime at the GM Lansing Delta Township Assembly plant, it was recently announced that the GM Spring Hill Assembly facility in Tennessee, the Ramos Arizpe Assembly and San Luis Potosi Assembly facilities in Mexico, CAMI Assembly in Canada, and the GM Lansing Grand River facility in Michigan will also undergo additional downtime.
As a result, production of the Cadillac XT5, Cadillac XT6, GMC Acadia, Chevy Blazer, Chevy Equinox, GMC Terrain, non-Blackwing Cadillac CT4, and non-Blackwing Cadillac CT5 are also affected.
Throughout the 2021 calendar year, General Motors and the broader automotive industry have struggled to keep production lines moving as a result of the global microchip. In an effort to lessen the impact of the shortage, GM has adopted several strategies, including prioritization of production for its most popular models, namely its full-size SUVs and pickup trucks, as well as a reduction of features, such as fuel-saving technologies like AFM and DFM.
What’s more, General Motors has adopted a “build-shy” strategy wherein certain models are produced in an unfinished state, then stored as new microchips are sourced. Once new chips are acquired, the unfinished vehicles are completed and shipped to dealers.
Despite the challenges, it is possible that General Motors may still achieve record profits this year.
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Comments
When production resumes will they be building 22 MY or is there still 21 MY to finish?
Our plant was set to start building the 2022 Model Year Enclave & Traverse vehicles on August 2, 2021. It will be very interesting to see what GM’s strategy is on this. Do they “scrap” all of the extra 2021parts and take some sort of tax write-off? Do they just make them available to dealers for repairs? They have to be paying for the storage of any current inventory of the 2022 vehicles, plus taxes, and that can’t be inexpensive! We’ll have been closed for 6 weeks if & when this plant starts up again. This plant used to be GM’s Cash Cow because, when we were running 3 shifts, had the full-sized 3-row Acadia, and ran 2 out of every 3 Saturdays, GM was paying virtually nothing for these vehicles. They were Pure Profit! They came in one day for an All Peoples Meeting and showed us that it only cost them something like $600 to build one of our vehicles. It’s hard to understand the scale, but when we were pumping out well over a thousand vehicles per day (more like 1,200 to 1,300, and the average price was $45,000 (it’s more today, but we’re only running 2 shifts at a profit of $50,00 per vehicle, on average), that’s in the neighborhood of $56,000,000 PER DAY! Yes, take out the wages (don’t forget, our wages got frozen for 12 years), insurance and operating expenses for a brand new state-of-the-art plant. my little calculator can’t multiply almost $56 million dollars a day by all of the manufacturing days in a given year. You folk than can do math: Call it $56 million by what, 300 plus days (Production gets almost 2 weeks off at Christmas, 2 or 3 days off for Thanksgiving, heck throw in another 3 weeks for MLK, Easter, 4th of July, Memorial & Labor day. So there are over 300 Production days in a year, which even using my low figure, means that GM was making over $16,000,000,000 from our plant alone, before the “expenses” were accounted for. That’s $16 BILLION folks. And this was just our plant! Imagine the profits the Pickup Truck plants were making! You can see now why GM can still have a record amount of profits this year in spite of the chip shortage?
I’m confused. Are you saying that It only costs GM $600.00 to produce a $45,000.00 + vehicle, not counting wages, insurance and building operating expenses? Perhaps you meant $600.00 is what it costs in wages, insurance, expenses per vehicle not counting the costs of the parts needed to produce the vehicle.
Wbo cares, this would be a good time to discontinue that car all together. They would be doing the world a favor.
I have been waiting almost 7 months for 2021 CT5-V. I am wondering if I will ever receive this car. By the time I get it, it might be an EV.
Same here. I’ve been patient, but it really irks me reading over and over again about GM prioritizing large trucks and SUVs. Apparently my $60,000 isn’t a priority.
Fix the 2021 problems first! Been waiting for months for GM to come out with a fix.
Anybody catch the article from .motor biscuit. The traverse is the worst Chevy you can buy. I agree.
My 2018 High Country with 50,000 miles,
had to replace small plastic fuel pressure valve at a cost of $190. Not covered by warranty in 2018, but same part has extended warranty for
Traverse through the 2017 , model year.
I only paid $53,250. for the car new…, one would think GM would treat a life long customer better!
IBEW Inside Wireman/Steward here. Just ordered a 2022. This will make my third Traverse. 1st was a 2010 LS AWD, bought used then wrecked. 2020 LS AWD bought out of inventory in November 2019, right after the strike was settled. And now a 2022 LT AWD Leather sun-roof, etc…Cherry Red. Keep an eye out for ya would you guys!