General Motors is running overtime at several of its North American plants this week as the automaker’s access to semiconductor chips continues to improve.
Speaking to The Detroit News on Monday, General Motors spokesman Dan Flores said the automaker is “currently seeing a better flow of semiconductors in our supply chain,” with nearly all of its North American plants currently running at regular capacity. A handful of plants are also running weekend overtime shifts, he said.
“We have made some weekend overtime scheduling adjustments at several of our plants in November and December,” Flores told The Detroit News. “This includes Arlington, Fort Wayne, Wentzville, Lansing Delta Township, Lansing Grand River and Silao, which have been working select weekend overtime shifts.”
Two North American GM plants remain offline – however these shutdowns are unrelated to the semiconductor chip shortage. The automaker’s Wentzville Assembly plant in Missouri is down for the month of December as the automaker performs renovations in preparation for the launch of the next-generation 2023 Chevy Colorado and 2023 GMC Canyon. The GM Lake Orion Assembly plant also remains offline as the automaker continues to work through the Chevy Bolt EV and Bolt EUV battery fire recall.
GM has grappled with countless plant shutdowns this year due to the semiconductor shortage. The automaker has prioritized getting chips to its most popular and profitable vehicles amid the shortage, which include its full-size pickup trucks like the Chevy Silverado 1500 and GMC Sierra 1500 and full-size SUVs like the Chevy Tahoe/Suburban and GMC Yukon/Yukon XL.
Analysts from JPMorgan said recently they expect the chip shortage to drag on into 2022, with a major improvement in the supply expected by mid-year. It also expects most of the effects from chip shortage to have dissipated by 2023 as U.S. and European fabrication output increases in the next 12 months or so.
With more GM plants coming back online, customers and dealerships should begin to observe an improvement in vehicle inventory. The automaker has run on extremely limited inventory throughout the chip shortage, which, when coupled with higher than usual demand, has reduced incentive spending and increased its average transaction prices significantly.
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Comments
Good.
Now start securing alternative sources for the production of critical semiconductors sourced from Taiwan. Things are about to heat up there due to aggression from China. You will need a plan B that you can execute quickly.
they did announce that already
Thats great! I want to know when my pre-purchased, paid for and already built 2021 sierra denali will be shipped from the assembly plant to the dealership. It’s been over a month since last status showed built.
That’s honestly not even very long compared to some. I’ve had customers without a meaningful update for 3 months. One was expected to receive his in June. Still hasn’t shipped.
Our GM regional rep said GM is committed to shipping all 2021s this year, with no more than single digit exceptions nationwide. That was a couple months ago. So far they’ve done a very good job of fulfilling that, but they still have work to do.
I know there are a lot of really smart people out here, so I’ll ask this question. Does anybody know how many almost stuff is sitting waiting for chip?? The 2021 or 2022..
I assume you are asking about built shy inventory? GM has publicly stated in November they had cleared half of their built shy inventory, and would take until January to clear the rest. GM estimated all built shy inventory would be clear icy the end of Q1 2022, which will be a nice tail wind in cash flow when they get that inventory off the books.
Thanks guys Up here in farm country we hear little if anything other when somebody get a truck it’s all muddy and dusty
I think thats another reason the 2022 refresh for the Silverado/Sierra is late. They don’t want the old truck on the lot with the refresh. However I am not sure that will not happen anyways. There is allot of build shy units out there and new ones being built till Q1 could be too much. Would expect big discounts if that happens.
The VAST majority of built-shy units are already reserved. For our store it’s about 95%. For the life of me I don’t understand where people get this idea that those trucks are suddenly going to be sitting on dealer lots waiting for buyers.
On the contrary all manufacturers and dealers are learning from this. They’re not planning on having such large lots full of inventory anymore. Far more emphasis on custom builds. That also means fewer rebates as rebates are introduced to move inventory.
My understanding it is to the THOUSANDS!
make sure you all run out and buy those junker’s now.sitting in a field for the rat’s to chew on.good luck.
This is good news! Maybe GM should look into opening that closed plant in Kokomo,that used to make chips until closed in 2016, as a plan “B.”
Kokomo did not make the type of chips that are short now. Not to mention all the equipment from Kokomo was gutted, its basically empty now, but will soon be making parts for EV’s.
Don’t cry about waiting on your new truck, I have had one on order since April 10 2021 and it still isn’t built as of December
Ordered a Yukon Denali SUV in April 2021 myself still waiting for the factory to pickup the order. Couple more yeats and I won’t need it, ridiculous!
In my experience (selling GMCs) this only happens with customers who insist on holding out for every feature they’ve ever heard of. Customers who adapted to the shortage and selected more modest builds have thousands of miles on theirs now, while the more stubborn ones are still waiting. I don’t know your specific situation but that has been true without exception at our store. Modest builds leapfrog truly loaded ones because that’s what GM is allocating through the shortage. I tell every customer looking into a custom order that the more boxes they uncheck the sooner they’ll get their vehicle.
I’m in the business also, I ordered our Yukon Denali XL (March of 21) we have a trailer we haul, and specifically checked the box for the brake controller.
Didn’t care about the power boards at all, GM dropped that order, and basically told me if I wanted that option to wait until 23,
All 22 fleet orders cancelled until further notice, aside from all the deleted options (heated cooled seats, and heated steering wheel). In cold climates, no one will buy such a vehicle, can’t tell you how many customers cancelled their orders….just sad
Reminiscent of the Go-Go ’90s. It’s a young person’s game, that overtime. Make hay while the sun shines as they say.
I ordered a 2022 Sierra Elevation at the end of October and just found out that, due to the chip shortage, GM decided to eliminate the heated/vented seats AND the heated steering wheel in mid November. Then offer a big $50 credit! What a bait and switch! That is a deal breaker and I will have to cancel my order if this is true!
They gave me $100 (each) for disabling the heated windshield washer fluid on two Cadillacs I owned.
I think the $50 credit (at least on the seats) is consideration for when you have to make a return trip after delivery to the service department to have the chip retrofitted. Somewhere on this site I think I read that they have also figured out a retrofit on the heated steering wheel too, but check with your dealer on that.
The majority of those losing heated front seats will get a free update at the dealership when parts are finally available. Steering wheel is more complicated, so that’s where the $50 credit comes in. If you got a $200 credit then there would not be a free upgrade later.
My High Country has been built and shy of a chip for shipment and has been sitting for over three months with no word on when it will ship. Things are out of control and crazy.
Q: WHY haven’t auto makers partnered with chip makers already??????????
Because the chip makers don’t want to make the chips anymore. Automakers don’t need the latest and greatest computer processors the chip maker want to make. They want dinosaurs from the 90s or early 00s at best, because they’re reliable and proven. But this requires the chip makers to keep open old foundries and suck up lots of resources they’d rather use on new chips.
Chip makers have MUCH MORE business from other companies than auto makers. Look it up.
Basically Jay, you are talking out of your ASZ!
Jay is dead-on right. Intel and others aren’t interested in legacy chips, they push the limits of technology to satisfy those other customers and their shareholders’ expectations. But the auto industry must use proven designs for reliability and liability. Domestic chip manufacturers stopped producing them, leaving other countries to satisfy the need for the boring stuff. It was a domestic manufacturing strategy. When Trump’s trade war restricted China from buying the latest and greatest chip manufacturing equipment they bought up our used stuff, so now it’s no longer around to retool and ramp up production ourselves. It’s a series of hard lessons in unintended consequences.
The CEO of Intel made a really ignorant statement about this, telling auto manufacturers to get on board with modern chips, as though there are no other factors involved and as though Intel wasn’t one of the manufacturers who left GM dependent on foreign suppliers.
It’s great to see that GM will be able to work on selling the new vehicles sitting on lots unsold. What about those of us that need repairs on our vehicles that need the semiconductor and have been at the dealership for 2 months? Any updates on dealerships just getting parts?
It better be quick. As of this evening my local GMC/Buick dealer has 4 FOUR, new units on the lot. 1 1500 Sierra, 2 identical Canyon AT4, and 1 Encore. Super scary.
Truly horrifying.
Good start pumping out some Escalades.
Order a 2022 GMC Terrain Denali my local dealer tells me I will be getting it probably in March or April at the latest with deletion of the heated steering wheel and heated seat option for time being gm will give a small credit for the inconvenience but will be retrofitted at a later date but that would be sometime in the summer of 2022 when they receive the parts for the options to work . Not much I can due I do want to stick with this vehicle being that not a big fan of imports with the CVT transmission . So I will wait and see if I’m not satisfied when the vehicle arrives I just get my deposit back and move on .
100K + for a Cadillac Escalade, with no heated/cooled seats, no heated steering wheel. No power running boards, no tilt/telescopic wheel. No remote start,
No, No, No…… NO BUY
Just got some encouraging feedback from my dealer that my vehicle should be built in the next few weeks. New year more chips arriving who knows I may one day get it. Hopefully optimistic!
They better build something cause they ain’t selling EV’s!
Totally agree !!!
How are the vehicles faring gm builds now in Mexico after the taxpayer bailout? Asking for a friend.
Hi GM Auth please do a update on Built shy inventory levels would be interesting..
put all your money in windmills ride a donkey. remember build back butter.
Remember people, GM received bail-out a few years back. Maybe they still have not worked out all issues that got them to the place they needed a bail-out.
I have a 2021 Silverado Trail Boss on order that has bene built since last August, we were told he got its chips in September and was awaiting transportation. I check every week with the dealer and Customer service on line. We were told it should be here by 19th, almost two weeks ago. We checked it again and now we are being told it never got its chips. They have no clue when it is shipping??
ordered a 2022 at4 nov. 1 2021 as of now it only says gm has accepted my order, does anyone know if I will get this truck or should I cancel order and shop elsewhere???