Inventory of the Chevy Traverse is nearly non-existent, running at just two days supply at U.S. Chevrolet dealerships as of the first week of August, GM Authority has learned. That’s a far cry from the 60 days that’s considered optimal for the auto industry.
The extremely low supply is in part because the GM Lansing Delta Township plant was shut down on July 19th due to the global semiconductor shortage. Production at the facility was originally set to restart on August 16th, but the plant will now remain offline until at least September 6th because of the shortage.
GM continues to prioritize production of its full-size truck and SUV models as it weathers the chip shortage, which represent its most popular and profitable products. This has resulted in numerous production stoppages at its passenger car and crossover plants, including lengthy delays at the GM Fairfax Assembly plant in Kansas, which makes the Cadillac XT4 and Chevy Malibu, as well as at the GM Lansing Grand River Assembly plant in Michigan, which produces the Chevy Camaro muscle car along with the Cadillac CT4 and CT5 luxury sedans.
Some analysts estimated that nearly six million vehicles have not been built globally due to the chip shortage so far. That number will also rise in the coming months, as the situation is expected to last until at least early 2022.
For its part, GM is hoping to avoid future chip shortages by negotiating stronger supply contracts with chipmakers.
“Whether we work with foundries to give longer-term commitments or we look to partnering with folks, we’re looking at all aspects of the supply chain to really ensure that something of this magnitude as it relates to chips doesn’t happen again,” GM CFO Paul Jacobson said earlier this year.
The automaker said previously the chip shortage will trim around $1.5 billion to $2 billion from its 2021 operating profit. GM reported a net income of $2.8 billion on revenues of $34.2 billion for the second quarter of 2021.
Production of the Chevy Traverse at the Lansing Township plant was also hit badly by a two-month factory shutdown due to the COVID-19 pandemic in 2020 that impacted all GM U.S. production operation. The plants then followed a slow path to recovery.
Healthy sales of the Chevy Traverse have undoubtedly contributed to the disappearing supply, with sales growing at over 59 percent during the first six months of 2021. As a result, the Traverse’s market share increased from six to seven percent in the highly competitive midsize and full-size crossover segment.
Sales Numbers - Midsize & Full-Size Mainstream Crossovers - H1 2021 - United States
|MODEL||YTD 21 / YTD 20||YTD 21||YTD 20||YTD 21 SHARE||YTD 20 SHARE|
|JEEP GRAND CHEROKEE||+11.94%||107,924||96,409||10%||11%|
|HYUNDAI SANTA FE||+45.32%||63,110||43,429||6%||5%|
The Traverse is Chevy’s largest crossover. The 2021 model represents the fourth model year of the second generation, while the 2022 Chevy Traverse will receive a midcycle enhancement, otherwise known as an MCE or refresh, consisting of new front and rear fascias, along with minor updates to the interior. Like several GM models, the refresh was delayed due to the COVID-19 pandemic.