Supply chain disruptions continue to hurt automakers’ where it hurts and there’s little relief in sight, as many experts predict the new vehicle shortage will last through to 2024 at the earliest. GM has not been spared from these parts shortages, with the American automaker currently holding 95,000 incomplete vehicles in its inventory awaiting various components.
In its second-quarter earnings results published Friday, GM said it continued to grapple with supply shortages over the past three months, negatively impacting its wholesale numbers. While parts shortages have been a running theme in the auto industry since early last year, GM had been managing the situation throughout 2022, but once again began experiencing snags in June.
“GM’s second quarter vehicle wholesale volumes were impacted by the ongoing semiconductor supply shortage and other supply chain disruptions mostly in June,” the automaker said. “As a result, GM will hold about 95,000 vehicles manufactured without certain components in company inventory until they are completed and will recognize revenue when they are sold to dealers, which is expected to happen throughout the second half of 2022.”
GM began stockpiling finished pickups in storage lots around its Oshawa Assembly plant in southern Ontario earlier this year. This backlog was mainly due to GM’s “build shy” strategy, which entails building vehicles without chip-intensive features or components, then fitting those missing features or components once additional microchips were sourced. While this is faster than idling plants and restarting them once chip supply returns, it can leave the automaker with a large backlog of vehicles that it needs to ship out once they are complete.
The automaker’s Q2 earnings report acknowledged there was “significant pent-up demand for GM vehicles amid low inventories,” with Steve Carlisle, GM executive vice president and president, North America, vowing to address the problem as quickly as possible.
“We appreciate the patience and loyalty of our dealers and customers as we strive to meet significant pent-up demand for our products, and we will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible,” he said.
In addition to microchips, automakers are also experiencing a shortage of other components, including plastics and seat foam made from petroleum-based materials.
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Comments
Build Back Better. Working out great in every industry.
Hell yes! This guy has messed up things more than anyone could have ever imagined.
You may want to pull your head out of your arms no ow that you have checked your colon.
Can’t handle truth eh?
why not vote for which corporations will control your life?
Best comment of the day you said it all here I want everybody to read this, I wish I was as eloquent as you just tells it all and if you don’t know that you’re ready for trouble and your future
GM already has marginal paint finishes on their vehicles. They will need a clay bar for sure after sitting that long in parking lots, fields, etc.. You pay $50,000.00 large for a pickup-contaminated paint is not charge.
Gm has spent several billion dollars in the last 4 years for new paint buildings with the latest and greatest painting and production processes in all its full size truck pants. I know because I work in Fort Wayne assembly. The paint department is state of the art!
Randy-
I have a 2018 SIlverado. The paint is garbage. Are you telling me that won’t be the case next time around?
Then why is the paint coming off of my Silverado?
I must agree. My cherry red tintcoat on my 2022 Silverado is top notch, extremely impressed.
And what, exactly, has he done to make any of it better? The bumbling moron has made everything 20x worse.
Glad I bought a new 2019 Silverado LD in Jan 2020. At least it came with all its parts, perfect paint
and runs like a Rolex . Hell, it may be paid off by the time GM sorts out their part shortages. 🙂
Trump is Satan himself and should be locked up for all the injustices he have caused. I think he is the reason behind all of this that this country is facing but we can all just stop looking for someone to blame because it must come to pass because God is still in control!!
I think you will find out that we all are meaningless one day.
Glad you brought up the “shortages” in all things plastic. I’ve noticed one thing, kid’s toys, no real price changes. All the idiot liberals are failing to comprehend that “plastic” makes up most of their world, and their world is falling apart.
Another deep thinker who lacks even a basic understanding of supply and demand, let alone economics. Might as well blame Bigfoot for all your problems.
Bill, A little sensitive, are we? Is witttle Billy-Willy all shook up because his mommy did not wash his “Skooby-Doo” undies today?
If you’re trying to be smart, at least spell Scooby-Doo correctly. I mean, you’re typing out childish words; even children can spell Scooby.
Oh that’s why my head hurts
Tue, July 23, 2024
DETROIT, July 23, 2024 /PRNewswire/ — General Motors Co. (NYSE: GM) today reported second-quarter 2024 revenue of $48.0 billion
As the story reports chip manufacturing should have cleared the incomplete vehicles….
Oh boy this pushed my button into the red. Pulp Fiction. A good friend ordered a CT4-V Blackwing Last October, came in last week. $15K over. Take it or leave it he was told. He took it. I’m gonna try to articulate this the best I can buy your car used to be so much fun go around looking at cars have these guys try to get your business grind him down now take a leave it we only have one of these I guess my car days are over. The GM at my Cadillac dealership who I know well great guy said he rather sell cars like this than before they’re making their money they don’t have to wheel and deal old people are paying the price this is it gonna change Joe Biden cursed this country with his stupidity. This is not a political space I understand I just have to get that off my chest cars of all things septic we all could share and have a good time with you spell taken away two with six dollar gas in California. Thanks for listening
Your friend is an idiot.
Anyone that pays $15,000 over sticker deserves financial ruin.
Well though not true he’s a really nice guy but I agree I think would you wait for something that long and you’ve wanted it that bad and can’t afford it let them do it I would never do it never had told him so but nice car beautiful car . He probably would like you though you don’t even know if you call him an idiot he can afford it trust me
*Really nice guy*
In other words a gullible person that can be taken advantage of & is an enabler to these crazy car prices.
Recession can’t get here soon enough.
Hey Evan what are you Canadian you are one douche bag where do you get to spill hate Jesus Christ you don’t even know the guy I’m done answering your crap I just want to give an example and your character assassinating somebody go back to your igloo man
I hope you are not insulting all Igloo dwellers? Some of us are fine people!
What a wonderful human you are. Canadians are douche bags???
Ignorant !!!! What a way to look at Canada
Trapper, Don’t worry about Bob… His mommy did not wash his Skooby-Doo undies… He is sad…
Then why is the paint coming off of my Silverado?
Being able to afford something is not the issue. Being extorted by the dealership is. If your friend is that weak, more power to him. As for me, I would have told them to go to hell.
Ever hear the parable of a Fool and His money are soon parted? Your friend appears to be beyond fool?
We have a 2022 Blazer stuck in Mexico somewhere ordered 1st wk Jan, maybe built maybe delivered when? The area dealer isn’t talking to me, so I figure they will try to steal our GMC and play the U ordered this, take it or leave it scenario…….GM Employee disc. isn’t worth squat today, on their OVERPRICED units! Forgot to mention, GM demanded HUGE deposit to order?
By now one would think they would have wised up in real life they can’t keep utilizing obsolete processors and the time has come to advance to state-of-the-art processors and get their businesses back up and running. Why they haven’t is an interesting interesting question. Who’s benefiting and how from this debacle?
Bob, do you have any punctuation buttons??
I paid 5k over for a 22 Yukon XL Ultimate package with air ride, advanced tech, max tow, power boards, pano roof, rear media, etc. What do you have to say about that? I could sell it, with 15k miles on it, for more than I paid for it. It’s all relative.
the has in Cali is more like 7 in most places. no good reason for it except that oil companies take advantage . Corporations are the evil behind all things americans are fed up with, If Americans United their collective disgust and focused on the true enemy, the American Corporations, we could take back this country, but you have been misled by the greatest mind control experts to believe that somehow your individual happiness depends on politics, and that is a lie.
The reason it’s worse in California than the rest of the country is entirely self-inflicted.
Lol, CA had a chance to recall their governor and they chickened out, now no whining allowed, you guys got exactly what you asked for!
Do any of you know about “Just in Time” supply concept, developed by Toyota in the 90’s?
The idea of no warehousing of parts. Parts directly delivered to manufacturers in time to install into vehicles.
Well the pandemic screwed that idea completely.
No warehouse with parts on hand. Global shipping came to a halt. The only on to blame if any are the corporate logistics people with no “what if xxx happens” planning.
Politicians have very little control over global issues like pandemic and senseless wars.
Get use to the new reality of the market.
Yep, NOW the concept doesn’t work & Corporate fell for their own hype!
The “JIT” concept actually came about a decade earlier, in the 80’s. GM began to utilize that concept in the late 80’s and early 90’s. The result eventually became quite painful economically, for GM. The “JIT” works ok in a geographically smaller nation like Japan, which is an area about the size of California. However, North America GM has component plants in the Midwest, as in Indiana, and assembly plants in California, New York, Michigan, Wisconsin, Ohio, Missouri, Tennessee etc. This vast sprawl is just waiting for a trucking disruption from a multitude of reasons. In many cases GM had to use air freight to get parts to assembly plants, paying exorbitant fees, in order to avoid an assembly plant shut down.
Today that supply chain is much longer, China, Japan, South Korea, Australia etc. Now with southern border closings, viral pandemic and war, we have an devastating supply chain failure, not only nation wide, but world wide.
That can’t be true. If he put money down and had a receipt, then he had a contract that every court would uphold. He should NEVER had paid any premium!
There’s no correct answer to this problem things have not gotten better and the supply chain it’s the same old crap OK that’s my last comment
wow. not one comment so far was on topic or worth reading. so much bad mood.
really sad.
the technocal issues with building semiconductor plants, the ever imcreasing use and variety of semiconductors is incredible. athe entire 5g network, the newer levels of cybersecurity have required the entire industry (not auto) to build new equipment to replace everything old, this requires more than the normal economic demand.
Now come back around to auto truck, dealers are making good momey, not haggling.
Ome thing disappoimts me is that chip companies, semi conductor companies, do not reflect this in their stock prices.
After the semiconductor fabricators over build their factories and create too much capacity, there will be a crash in semi industry. I have seen it before.
Sooner than you think. Micron stock is crashing on poor outlook. crypto mining uses a bunch of graphics chips, and those chips (well cards) are coming back to the market via ebay now. As you say, semi is very feast/famine biz. I’ve seen it too. Remember when they were practically giving away memory? Good times.
Still waiting for my Chevy Equinox ordered on May 6th but they said it is built and in transit to train Yard in NYS.After that still waiting for delivery to dealer.What the heck is going on with GM…I blame Biden and the administration.Buying Chevy’s for 60 years but never like this.
Hi Conrad. I don’t blame Biden (I just think he has as much to do with GM’s business decisions and logistics problems as my dentist), BUT I’m also waiting on an Equinox. I didn’t order mine, but reserved it already In Transit. Not sure when was produced, but when I discovered it on June 15 it was on a rail car in Arkansas, having come in from Mexico the week before. It had an estimated delivery date of 6/30. On June 22 the dealer said it was outside Louisville, KY with an estimated delivery of 7/7, and on June 29 it had been checked in in Lordstown, OH with the estimated delivery date moved up to 7/5. Lordstown is about 4 hours from my dealer in north central PA. I didn’t get a call today, so I’m guessing it didn’t make it, but hopefully it’ll be very soon since they’re playing with which day it will come in now instead of which week. I was really just responding to let you know that as near as I can figure, delivery time to the northeast once it crosses into the US is about a month if all goes well.
Not a healthy place today on GM authority. If any of you really think that the puppet at 1600 Pennsylvania Ave has that much control over your life, you are really mistaken. I learned decades ago that the the circus in D.C. is to distract you. And has nothing to do with your daily lives. Take back control, stop being suckered into their game.
You can be happier, live longer, have a better life, if you ignore the antics that literally have
nothing to do with you.
As for trucks, to get back on topic. A cleaned up new truck under full warranty is still new. And this method keeps people working. I am glad their are jobs building trucks, even incomplete ones.
Y 95,000 vehicul stall because there is no F…….. Chip and afther that they going to put the price higher… 🙁
Let’s see, all those 2022 vehicles that have been ordered are sitting in lots waiting for parts… When those vehicles go to their new owners (who have not canceled), will GMC and the dealers credit the owners for the cost of depreciation??? (never mind, just woke up)
I waited 13 months for delivery of a new car. And after doing so, prefer that to being pushed into buying what i did not want from in stock inventory. I paid MSRP, but I waited, for exactly what I ordered. I want all vehicles production to be this way, order exactly what you want, have it built for You.
I am suspicious of the shortages of so many products, it seems corporate executives and greed are more at play here. Why is there so much availability of certain things that are not necessary, like TV’s, cell phones, and tons of consumer garbage , at really cheap prices?
Maybe we are being played.
I don’t mind paying MSRP that’s more than fair but when they up it $15,000 that’s when things get a little dicey. I just don’t see this ever changing back to the old way I’m glad you got your car and MSRP got what you wanted
That extra $15,000 is that for two vehicles???
Don’t believe those who say it isn’t the administration’s fault.. They know the scope and ramifications of their policies and slam Americans with it. The president is a jerk and now he and the admin will suffer for it..
This problem began under the previous administration and we don’t see the harm just over night.
Ever ask an Amish person how these things you complain about affect them?
I noticed they are not too worried about most of what other people are crying about.
Maybe they know something.
Well are you Amish? What is stupid remark that is what do Amish have to do with anything he’ll buy cars investor trying to get away from the cult
It appears Graeber’s point was missed. Also, why all the personal attacks of late? Is it a symptom of the tRump syndrome?
I’d think they would idle production line down to get those currently built shy pickups moving! Cut 1/3 daily production to get chips for the built shy stuff🤷🏻♂️. My 2 cents
Seig Heil, the comments today are proof that it is time for a new way uf doing things.
A way that will be true to the old ways, and old values, and bring back prosperity , for common worker, a way that only cost you $10, sent to my personal account.
So you can be a part of this special rebuilding of the Great Dream that your ancestors had.
Seig Heil.
Hear hear you set it all if people can’t see it maybe this is a good thing if you can’t buy a car that might be some people off but I doubt it will just pay it like sheep
Baaaaaa Baaaaaa
First comment on this forum…interesting conversations.
We sat down with our local dealer and “ordered” a new 3500HD on February 10th. We got a phone call on April 27th from him telling us he was amazed that our pickup had been delivered to the shipping point in Milpitas, CA. So we got the ball rolling on financing, insurance, etc. “SURPRISE!! Just kidding!” Got the VIN’s switched with another one. Last week we checked back with the dealer and it’s listed as “in transit”. So it’s most likely sitting in the lot at the factory with the other 94,999 vehicles. I told our dealer we won’t pay a dime over the agreed on price so we’ll see where that goes. Unfortunately, if that happens, someone will get a brand new pickup without having to wait. Meanwhile, our 2005 2500HD LLY keeps on truckin’!
This whole supply chain issue is what happens when a country becomes dependent on foreign suppliers. Used to be the politicians pushed for a $15 minimum wage…now they call it a living wage. That can be a lot per/hour for little to no skills if you live in California as we do. So in order to beat it, manufacturing moves overseas for cheap labor. Meanwhile, those of us paying ever increasing taxes to fund those that don’t want to work here pay the brunt of it. It’s a combination of corporate AND politician greed because the two are in bed together.
So, everyone blames the WH for your truck not being delivered or sitting around waiting for parts. The same ones blame the WH for high gas prices? It all started by the last administration. DT screwed the world economy messing around with threats and additional tariffs. Ask any economists, when any economic changes are implemented it takes two years before the economy reacts. Two years ago it was DT in the WH. Gas prices here in Central Florida has dropped about 55 cents a gallon in the last month and not one word how good the WH is handling the situation, but just a nickel increase, naysayers want to hang the man and blame all there economic problems on Biden.
What a moron🤦♂️🤦♂️
The same people whining about paying over MSRP for a new vehicle have no problem selling their own vehicle over MSRP in the marketplace. Get over it and get a dealers license. It’s all about supply demand. I work for a dealer, he has sold at MSRP all through the shortage. He has watched a handful of customers buy and sell above MSRP. He’s done. Going forward, if you want a high demand low volume product. You’re going to pay for it. Why shouldn’t he sell for MSRP plus. He pays the overhead everyday of the year. Forget the flavor of the month folks making money at the street the level. Get your own store.
Fortunately we have a nice big beautiful recession coming that will put an end to that greed & money wasting once and for all.
Yup that’s when I will buy, when the rebate incentives come back
In Sudan people are literally starving to death because of Ukraine and supply issues, not saying this isn’t a convince but look at the overall situation we’re in vs other countries to appreciate what we have.. Happy 4th!!
Is it just trucks that are waiting for chips that are set aside or trucks that do not have exactly what you ordered? I was told because my multi-flex tailgate was on hold, I would have to take the truck with a normal tailgate instead or cancel my order after I have been waiting for the last 4 months and counting.
Just google “F150 in storage” and Ford has about the same number. I see the point to keep factories and employees working but this has to be highly expensive. The two problems will be once parts are available, if they can get 90,000 parts in a steady stream is how do you get all these part installed, tested and then loaded up on trucks or trains. Stop production and use assembly line workers?
Those vehicles are being crushed and nearly all will be destroyed. It is simply impossible to go back and make-ready them all and they will not try.
Ordered a 2500HD custom 7/28/21 it’s finished setting in lot with many others it’s now 9/12/22 but I see 2023 showing up on lots! I’m holding my order if it’s 2026 I will get it or a legal fight will begin, it’s not dealer problem it’s GM greed! Good ppl ordered these trucks to continue work there small businesses and we keep the economy rolling GM could shoot them self’s in the foot…
This is bull, the reason they can’t complete there trucks is because they’re starting to build EV trucks which are sucking up the chips. Finish the trucks that are already ordered, get the stock pile cleared out, then build the EV ‘s. I’m still waiting for my park assist module which takes three chips.
“the reason they can’t complete there trucks is because they’re starting to build EV trucks which are sucking up the chips”
That is an incredibly ridiculous statement. What EV trucks? Where are those even at?
No, this is a different problem entirely and it’s been going on for a while now.
Do “they” not teach people how to back up in driver’s education anymore? I am waiting for my “backup assist” chips too… But having been driving for over 45 years, have found my SUV will back up perfectly without the chips. This is why those things that cast a reflection have been mounted on each side of the vehicle since the horse & buggy days… BTW, still waiting for my chips for my heated second-row seats as well. I made a deal with the dealer… Every time that I bring the vehicle in for an oil change, if the chips are not in, I get a free wash and detail.
All BS! This is a strategic attack on vehicle production of gas produced vehicles. GM has caved to the Biden radicals it’s pathetic! Waited and waited to order my Suburban but kept being denied my order due to “unavailable “ options but oh wait the third price increase wasn’t delayed! Bye bye GM. Lost customer!
I can guarantee mice are chewing wires in many of these trucks parked with long grass/weeds growing. I want a new truck, waiting on what size but would never buy one sitting for months. I know some people that needed new wire harness because of mice. Air cleaners with mice nests etc. and it didn’t take months to happen.their having a field day no pun intended!
If you are really lucky, your 2022 vehicle with the chewed-up wiring will come with free pets…
I heard that there were a number of stored vehicles that were infested by mice that damaged the wiring and interiors and these were to be scrapped. Not sure if it’s true or not but I have heard it twice now.
And we aren’t takling about the poop yet. 🏴☠️🤢
Look in the bright side, the racoons, rats, and mice will have a nice place to reproduce while eating wiring harness insulation.
🤣🤣🤣🤣🤣 so true with all that new electronics there must be enough for 6 famlies of mice
With the “Old” GM bankruptcy a few years back, GM shut down their wholly owned component plants and sold off the buildings and real estate. Now GM is at the mercy of others for their automotive components. To make the matters worse, many of the components, come from the Chinese communists and are subject to their whims. The Loss of America’s industrial base will be our undoing.
It took 6 posts B4 this went totally off the rails. 🤣🤣🤣🤣🤣🤣🤭🤭🤭
And you don’t think people in THE US not Canada are angry. Canada goes with the flow hey.
are you sh1ttin’ me? Canadians are pissed as well… Most order through their dealer like my daughter. Her 2022 Acadia took 5 months to be delivered… I shopped by “dealer inventory”, spec’d out what I wanted online, and started phoning. I had my 2022 Acadia Denali AWD V6 in Satin Steel Metallic (the color I wanted) in my driveway in about a week and a half. I asked for a detailed build sheet and paid the sticker price. 2022 Acadia with the V6 AWD is rare in Canada.
Bob… it’s not “hey”… If you are going to learn to speak Canadian, do it right! The correct word is “eh” Example.. How are you doing eh?
Damn wannabe Canadians… This is part of our new citizen immigration test for newcomers.
I think you will find out that we all are meaningless one day.
True, cause that’s who’s at fault. Glad you get it.
Me buy a new car…..never. All you need is a good two or three year old car with low miles. It will last forever.
Oh boy. The outlook does not look very good either. In fact, it looks wheely (it’s a car site) BAD. I wish I didn’t need another vehicle right now and could gladly ride (sorry it’s a car site) this one out.
*groan*
I need one right away. Don’t tell me I have to wait a whole year for one.
shop on GMC online through dealer inventory… do not be loyal to one dealer… spec out the model, motor, color, etc… you will find it… it just takes phone calls and the ability to see the vehicle at a moment’s notice. Also, if you build that same vehicle online you will see what the sticker price is supposed to be instead of a “mark-up” by a greedy dealer. I got mine, exactly what I wanted, in the color I wanted in under a week and a half…
I don’t know how much longer I can hold out on buying a GMC van if it takes more than a year to get one?
You have a good dealer that will do a detail. Most will only run the vehicle through a machine and say that they have detailed it. Mine brings it back with the evidence that they have worked on it. That being the grease.
Will continue to drive My 2018 GMC Acadia for many more years…use to trade every 2-3 model years, but no longer. Not paying “time and a half” for already too expensive vehicle.
Take it easy on me here. I have been looking at a 2021 and 2022 Yukon Denali. I feel like the used car price is damn near the new car price. I am seeing $85 – $90 k for a used one. I jumped shipped and ordered a new Denali Ultimate. It is $95 with the destination charge. Is this a bad move? Should I wait?
I have been waiting on a small wiring harness since March 2022 for my 2021 Tahoe after someone rear ended me. Not a happy camper!!