More than 10,000 built-shy full-size GM SUVs are currently parked around central Texas, according to a new report from The Detroit Free Press.
GM has been building partially-finished examples of its full-size truck and SUV models amid the global chip shortage, allowing it to quickly complete the vehicles once it receives the chips and other electronic components it needs. This plan, referred to as the build-shy strategy, has allowed GM to keep its most important and profitable vehicles in production while the chip shortage continues to cripple the North American auto industry.
The Arlington Assembly plant, which builds the Chevy Tahoe and Suburban, GMC Yukon and Yulon XL and Cadillac Escalade and Escalade ESV, has so far taken no downtime amid the chip shortage thanks to the build-shy strategy. The plant is still feeling the effects of the chip shortage, though, with partially-finished GM SUVs rapidly piling up in inventory lots across Texas. According to The Detroit Free Press, more than 1,000 vehicles are being parked in the inventory lots per-day, with more than 10,500 vehicles currently in storage.
In a conference call with industry analysts on Wednesday, GM CFO Paul Jacobson said the build-shy strategy has so far been working in GM’s favor.
“We think truck production and full-size SUV (production) is relatively stable,” Jacobson said. “The vehicles built without certain modules is a strong option for us — we are redeploying chips to those vehicles from the plants that are down.”
While the production of GM SUVs is being helped along by the build-shy strategy, it has only had to rely on such measures for a small number of full-size pickups, Jacobson said. That’s because the majority of semiconductor chips GM gets are being funnelled to its full-size pickup plants, as the Chevy Silverado and GMC Sierra are its two most popular and profitable models.
GM has also been building some vehicles without certain technologies in order to cut back on the number of chips it uses per vehicle. For example, some full-size truck models are being built without Active Fuel Management, Dynamic Fuel Management or HD Radio.
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Comments
If the Sierra trucks are targeted for chips due to better profit, then why has a 70+K Denali crew cab truck built in April/ May still sitting in Mexico listed code 3800? It’s been a long wait to give GM $74,000.00 for this profitable truck
Meh, nothing of value has been lost. Serves GM right for getting chips from overseas vendors. Lie down with dogs…
So, these vehicles are 2021 models or 2022 models? If 2021 models, it’s now August with no definitive time schedule for the required chips to be delivered. Looks like there are going to be big discounts on 2021 models down the road.
The days of huge rebates are long gone. Inventory will never go back to what it was. More inventory means more rebates. Auto makers figured it out.
“For example, some full-size truck models are being built without Active Fuel Management, Dynamic Fuel Management”
That would be a good thing from the reliability perspective. A lot of people pay to disable and remove AFM.
Wish someone would comment/report of the exact nature of this process. IE what sensors how long it takes to complete the units and how many are finished a week.
So they will give you a $50 discount if you buy a $50k vehicle without the chip they need? What a deal!!!
10k vehicles is only 200 per state, insignificant. This story is hyperbola and fear driven to get people to buy whatever is on the dealers lot NOW!
Ordered yukon xl denali may 29. Still not approved for production per gmc. Looks like i stay with ford and get into another expedition. Only wanted to try a few newer features by going gmc but apparently that isnt going to happen.
I ordered the same thing back in January. The trailer tow max package and technology package is apparently holding it up.
If GM and Ford were thinking, they would get chip makers with extra capacity working on their chips. Like Frito-Lay and Pringles
Why are they coming out with the 2022? I ordered my 2021 Suburban in July, built in August. Still have not received 2021 Suburban but they are shipping 2022 to the dealers! Shouldn’t the 2021 models be shipped before 2022?