Production of the Chevy Equinox and GMC Terrain crossovers has once again been delayed as a result of the ongoing global microchip shortage. The new production restart date is October 4th.
The Chevy Equinox and GMC Terrain are produced at three North American facilities, including CAMI in Ingersoll, Canada, Ramos Arizpe in Mexico, and San PotosÃ, also in Mexico. All three facilities have pushed back Chevy Equinox and GMC Terrain production until the October date.
As GM Authority has covered previously, General Motors has announced new production stoppages at eight of its North American Facilities. In addition to the three facilities mentioned above, General Motors will also idle production at the GM Wentzville production facility in Missouri, affecting new units of the Chevy Colorado and GMC Canyon pickup trucks, as well as Fort Wayne in Indiana, Silao in Mexico, Lansing Delta Township in Michigan, and Spring Hill in Tennessee.
General Motors isn’t alone when it comes to feeling the impact of the global microchip shortage. Indeed, the entirety of the auto industry continues to grapple with the effects, which have now extended into other industries as well.
General Motors has contended with the global microchip shortage since earlier in the 2021 calendar year, employing a number of different strategies to curb production stoppages and keep new units rolling off the line. One of these strategies is known as a “build-shy” strategy, which essentially continues production for a certain model in an incomplete state. The effected model is then parked as new microchips are located. Once additional supplies are acquired, the vehicle is then completed, after which it is shipped out to dealers.
Another strategy General Motors has employed is deletion of certain features that require microchips, such as Active Fuel Management and Dynamic Fuel Management with the GMC Sierra and Chevy Silverado.
Unfortunately, experts predict that the microchip shortage could last for quite some time, with the latest predictions extending out to 2023.
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Comments
Manger to salesmen short morning meeting today,go out and mark-up everything on the lot.
Manager to salesmen, “We have no physical inventory to sell. No need to sit around here all day. Make 20 calls to recent prospects and see if they want to order anything. Then take the rest of the day off.”
Where do Subaru cars fit into this picture? Specifically, the Subaru Legacy?
Subaru is halting production in Japan factories for 4 days next week. Subaru’s US factories are not affected by the shutdown. Subaru started building the 2022 models in the US in mid-July, but with the Legacy being a slow seller much of their production will be focused on the Outback and Ascent. If you want a Legacy and haven’t already ordered, you will most likely have a wait. Subaru is operating with an 8-day supply of new vehicle inventory and buyers are gladly paying above MSRP for cars. The market is absolutely whacky right now.
I’m sure come October it will be postponed to a later date this microchip issue is going to be here for long time coming have other friends in other business that need microchips in there line of work and there feeling the pinch to there bottom line also !! Hopefully this problem correct itself soon !!
The TOP Managers (CEO, CFO, Presidents) of GM and Ford came on world news outlets and stated “The second quarter will be the worst of the chip shortage” Here we are less than four weeks from the fourth quarter, and the worst of the worst is still getting worse. I am ready to fire all of these so call first-class CEOs. They are worst than the weather forecasters. You can get your thumb-down remarks ready, but I just want to let off some steam about all these miss calls.
The situation with the chips- like Covid- seems to be getting worse instead of better. I agree, some heads need to roll for this.
8 North american gm plants closed, no chips.
Wanted to order a 2022 GMC Terrain Denali looks like might have to pass don’t want to order then have to wait till 4-6 months to get the vehicle and probably longer and to over pay for a used terrain Denali ! I guess I keep driving my car and hope gm will turn things around under the circumstances they can’t control!
This is getting ridiculous…. So how bad does this have to get before Gm will need another government bailout? I know this isn’t just a GM problem, but are things not worse for the auto industry now than they were in 2008?
Not worse than 2008, GM is still building most of its most profitable models, no shut down at Arlington, Flint, Bowling Green, and still building Blackwings at Lansing Grand River. Factory Zero will start HummerEV production very soon, possibly next Monday. Not to mention GM is selling cars with almost no incentives, so they are very profitable, bad for the employees though to be on and off. In 2008 it was hard to sell cars, and everything had huge incentives.
GM announced in their last earnings report that the 2nd half of 2021 would see production down 100K units from the first half, and so far has not updated that guidance, so I assume they are still on track.
This is all crazy I tell u oh ya bail out coming soon with these kind of issues and gm lifter problem with there pick ups and other gm issues Im surprise!!! Well Halloween 🎃 is coming soon maybe some treats or more tricks I put my Money on the trucks !!
This will be a major impact on stock and sales.
But GM is far from alone in this. Even Toyota has had major production cuts as have most other MFGS.
To be honest the prices have not gone up as we got a very good deal on our Acadia that just happened to be the one we wanted. Selection is the real issue.
The strip of dealers near us have a major lack of cars of every make and even used are becoming slim. Large empty spots on the dealer lots are clear indications of the lack of cars.
GM is positioned well to survive this but some other brands are not.
The worst thing that may happen here is some dealer failures. But for GM they have too many dealers now. If they lose some that would be a good thing.
You are completely correct. Those saying GM was shorted sighted on this then your saying every other company is too. Including computer manufactures Lenovo, HP, Dell, they all have shortages. Its divvicult for me to get any computers for my customers and they have to pay about 200 more for similiar laptops/desktops than last year and some are old models. The blame on this really is the US government by raising corporate tax rates so high, so companies went off shore. Is both sides of Isle causing this.
2023 is the date everyone expects to be normal again because both Intel and Apple are building new computer chip plants in the US. Intel has even said they would let other manufactures use their facilities once they get up and running. Covid showed the people in the US the reason we need to rely on the US for most manufacturing and not the rest of the world. We need to become the manufacture captial of the world and have others buy from us. We can do it and we may pay a little more for things but everyone will make more money in the end.
Yes it will be delays for the next year yet. Still not easy to get the new play station yet? Shortages in new Apple products this fall are predicted too.
Lack of labor the lack of ability to unload ships on California and other parts are playing more delays to even non chip products. I see thousands of parts that are delayed due top labor issues and shipping delays. This leads to MFG delays. None of this is even Chip issues but remaining issues started by Covid and poor government planning.
C8.R do you ever look at data before you post? Dealerships are reporting their highest profits in history for the most part, and have been selling almost every car they get for full price, new or used. If a dealer fails in this market, they did not know what they are doing!
Reasons dealers are doing well financially
*Low inventory which reduces financing cost
*Highest ATP in the history of the automobile
*Decreased operation cost due to lower inventory (less staff)
*More highly profitable used car transactions
Both GM and Ford have publicly stated, they are never going back to the bloated inventory model they had before, as they save so much $$ by keeping inventories low, and will continue that into the future, and will also go to a more order based system on many product lines.
Donovan again you only sight things that favor your personal views.
Some dealers with deep inventories have been doing well while smaller independent dealers struggle with few cars. I counted one small dealer back in July with 13 cars and none were what anyone wanted much. They are surviving on used auction cars but even they are not great.
Highest ATP but I still got $8,0000 off my GMC. They only had 7 Acadia and now none. one Canyon and only a couple trucks and one Enclave. the rest are the Encore and Terrains. Most of these models will be down longer due to continued closures.
GM has been smart on how they have leveraged the production focus on the higher volume and profit models.
As for the bloated inventories. I have seen the stories and that is true. But no inventory right now is going to be painful for a couple months this fall. Profits will be down for most MFGs here for a while.
More lock downs may be coming due to the government and if it does it will get real ugly.
The bottom, line is just as I said. the larger dealers will survive and many smaller dealers will fail.
Larger dealers can move cars around the country to where they are needed or selling for the highest price. That places like Carvana have done as well the Penske and Hendricks of the market.
You forgot the biggest of all Autonation, which is making so much money they do not know what to do with it all…
Anyway, my local Chev, GMC Cadillac store is owned by 1 person, 2 stores, that they are cleaning up too, Huge profits. Profits are through the roof. So yes, there are some small town stores, and regions that struggle, but the overall dealer market is BOOMING with less volume but far more profit. On the West coast its hard to buy a new GM stuck without paying dealer markup.
You got $8K of an Acadia? Gm still makes those? They shouldn’t, one of the worst in class vehicles nobody wants (except you). Didn’t your father teach you to never buy a FWD based GM vehicle?
Most people when they run out of legitimate arguments normally shut up.
There is no one size fits all here. Like most businesses scale can provide a life boat to ride out the storm. That is an obvious fact of business even a JR high kid gets.
GM has worked smart but with most of their plants closed and inventories down to the vehicles that are just left overs there are going to be a few lean months. Not the end of the world but it will be a slow down on things.
The Acadia comment would really hurt if I knew you were not such a fake.
I have reservations on the OEM’s sticking to the lean inventory and push ordering idea.
When capacity returns I doubt they are going layoff people and have to pay them a large % of their pay for no work.
Due to crashes or needed repairs that the owner is not going to do,some people need a vehicle yesterday.
Rail yard bottlenecks can add many weeks to delivery times.
Vehicles assembled outside N.America take a long time in-transit,dealers will not give a firm price on trade-ins that far in the future.
Dealers are going to be far less likely to do dealer trades which many small dealers use to rely on for many sales.
Many people are not loyal to any OEM,they may go elsewhere just because of color etc.
Yes, the industry is changing… When Ford and GM say lower inventory, that does not mean “no inventory”, but instead of 75 days of inventory (GM carried in 2019), maybe 30 days is the right level. Toyota has operated for ever with much lower inventory than Ford and GM. Last month GM was at 22 days of inventory, the problem is they have zero inventory of the hot selling models, and had things like Malibu’s and Acadia’s which are not the ones customers want to buy. My local dealer has not had a Crew Cab HD on the lot in inventory for months, they are all pre ordered.
Even 30 days is going to disrupt the system when you have a truck that has 6 trims,4 engines,2wd,4wd,z71 and non off-road plus trailboss and then you have expensive packages that some have to have and some have little use for and will refuse to pay for add in colors and a sales manager will be flipping coins on how to order there stock.
Automakers really would like to remove the dealer system in general. Tesla makes a lot of noise about it but they were never forced into legacy dealers. If more new mfg get into the EV mix I expect the larg3 mfgs will push the government to let the break free.
If the Chinese start importing they would hold a major advantage with how they do dealers.
Will just have to see how the politics work out. It could be a reward for moving EV too.
For now they will still store most popular models and go use mfg on most popular configurations.
I placed a order for a GMC Sierra 1500 SLT 4×4 , I would like to have it by Halloween 10/31/21. ???
I drove by a GMC lot earlier today. Nearly bare, but still quite a lot of Terrains there (5-7 of them).
Terrains are the most prevalent models along with the Korean built 22 Buick models
Ordered 2022 Terrain Denali on June 2, just joking with salesman, I said see you in six to eight, I meant weeks not months! I hope GM maybe gives a little priority to order customers and not dealer stock. Not all of us are waiting for a LTZ or High country Pickup, Suburban or Tahoe
Looks like it’s about time to go back to a carburetor, points distributor with coil, manual transmission and crank up windows. Now… chip crises solved.
Todd in the same boat order a 2022 GMC Terrain Denali salesmen said cant give u a delivery date wondering if I get it before year end well I might Unwrap it for Xmas