Production setbacks have been a constant theme in the automotive industry for over a year now, with GM having dealt with recurrent plant shutdowns and severe inventory shortages over the past 12 months or so. While the chip shortage and other supply chain issues have improved in 2022, GM CEO Mary Barra told CNBC this week that the company is still dealing with various production delays on a weekly basis.
Barra appeared on CNBC’s Mad Money with Jim Cramer this week, where she shared some insights on the current situation the auto industry is facing. Barra said GM expects the current chip shortage and supply chain challenges to persist well into 2023, although the automaker maintains its same 2022 guidance of a net income ranging from $9.6 billion-$11.2 billion and EBIT-adjusted earnings of $13 billion to $15 billion.
“It’s gotten better this year than last year, but really this will go into [2023],” she said. “It’s going to take additional capacity.”
“But right now, it’s we solve issues and new issues pop up, and we’re just dealing with it on a weekly basis.”
While a shortage of semiconductor chips and electronic components are behind many of the production delays, automakers are also grappling with a shortage of other components, including plastics and seat foam made from petroleum-based materials. GM said in its second-quarter earnings results that it was sitting on roughly 95,000 incomplete vehicles awaiting microchips and other components. These vehicles will be completed and sold once GM has access to the components needed to finish them, it said, which will occur throughout the second half of the year.
Stockpiled GM trucks on Oshawa, Ontario
The automaker’s Q2 earnings report also 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,” Carlisle said at the time.
Subscribe to GM Authority for more GM production news and around-the-clock General Motors news coverage.
Comments
Drill baby drill!
GM is also dealing with leadership issues.
Why isn’t Barra solving global supply chain issues and inflation??
At least she doesn’t have to be in Bidens back pocket.
She is, by building all EV’s!
We ordered a Silverado 3500hd in March. Truck was built in June and we were given vin #. Last check it was still sitting in Oshawa with no plans for delivery to Minnesota. Been 19 weeks since ordered Wondering if my loyalty to GM is up for grab. Feel sorry for dealerships that have to deal with obvious poor management at GM. No more Covid excuses please.
The Canadian GM headquarters use to have its own Canadian Traffic and Purchasing Departments all those operation were transferred to Detroit before they shut the Oshawa Plant down the first time about four rears ago ,before they re- opened it again as a Truck and fabrication operation .The decisions on shipping your vehicle are now made solely at headquarters in Detroit Michigan !
Thanks Gary
Why isn’t Ford doing it with their apparent “hot” products?…
Because they have poor leadership too.
WHEN WE ORDERED OUR TRAVERSE RS IN MARCH OF THIS YEAR I WAS OVERJOYED.
ALL IT TURNED OUT TO BE IS A BIG DISAPPOINTMENT.
Considering the current political situation it will last until 2024, or next spring if Brandon and komi are impeached and real leadership is attained. All these problems are self inflicted. They can be solved real quick by kicking the right butts into gear.
Just QFT. It’s a car forum, not your podium for political opinions no one cares about.
Maybe is about time we start caring about it, because of politics, the only car talk we have had over the last 2 years Is how we can’t get cars. I’d love for politics to be its own world. It seams that in the pariah it became it knew the only way to get peoples attention was to spill out into our everyday lives.
And when will all the already sold short built vehicles begin to “retro-fitted. They have sold thousands of units with the commitment to retrofit begining in 2022 and we are just about third quarter end with zero units being served.
Collect now and never compensate the buyer with anything but a promise. And a token 25 bucks. Heated seats, Heated steering wheel. Park assist of various locations. Ventilated seats.
We holders of due retrofits should begin to gather and push this process to begin. Sure demand may be there from dealers, but the current market conditions have pulled sales way back. Slip some of those chips into the service and parts stream to start completing the sold units insead of all the unsold units.
Sam, you should start hitting this topic.
Every major corporation in the United States is responsible for the current situation. Their insatiable greed caused them to send almost every possible job out of the country and then they imported everything possible. They all should be tried for treason. No need to blame republicans or democrats. In case you missed it, we have one big uniparty in DC. They both suck! They haven’t represented We the People in the last 100 plus years or longer. They both get a couple of wins to take care of the base and then they spend the rest of their time dividing, conquering, and lining their pockets. Back to CEO’s… No CEO of any publicly traded corporation is worth more than one million dollars a year. Most scam their shareholders and should be in jail for their business practices. If it’s your idea, your product, and your money on the line. Make all you want and all you can. Corporate CEO’s are only stealing from their shareholders.
mary barra should do the world & all of us a favor & step down, & let somebody run it like a business, instead of just running it into the ground, like she has done & continues to do.
The Detroit automaker said Tuesday that it made $10.02 billion for the full year. And it predicted record pretax earnings in 2022 of $13 billion to $15 billion and net income of $9.4 billion to $10.8 billion. USNews
How can that be when they have almost nothing to sell in America?
Yeah she said all this supply stuff would be back to normal a year and a half ago. She loves the high prices though.
It amazes me how folks who squawk on this forum say it is not for discussing politics. The automotive industry is in the shape it is in because of bad politics. It is obvious that all of us who participate in this forum are GM people. If we want GM to survive, we might want to start discussing the bad political decisions ( like shutting down the domestic oil supply) that got us here.
Unfortunately the current bungler in chief is still the chief.Does no good to suck up to anyone else.
We bought our Buick Enclave back in April and they still don’t have a clue when we are going to get it.
RE EV: GM has never stated they will walkaway from ICE. GM understands the vastness of the US and many countries prohibits EV from a large percent if the population. But that said there is also a large percent that EV is a better choice. Also many world govts are forcing the EV issue. They are great in London and Paris where traffic density makes LA/NY/Atlanta rush hours look like high speed.
How much time I have to wait for a Chevy Spark 2022 if I’m in Québec Canada ?
My Nissan Versa Note SR 2015 is a total pain in the ass in terms of reliability!
Thank you in advance for your feedback gmauthority community!
I think this is the last year of sales in Canada for the Chevy Spark !
I know…. Such a shame for GM to stop this car production! I think production stops in august or september
I GUESS I’M LOST. WHAT ABOUT ALL THE POWER SHORTAGES WE HEAR ABOUT.
HOW MUCH WILL NEW BATTERIES COST IN THESE CARS AND HOW WILL WE DISPOSE OF USED BATTERIES.
GETTING HARDER TO AFFORD MY ELECTRIC BILL NOW.
Every time I read one of these articles from GM, I wonder more how clueless they are. All the excuses and yet they keep building trucks. Part shortages, chip shortages, no trucks, no train cars. Except for chip shortage, after each excuse you see the industry indicate there is no concerns. Truck and train cars available. Then you have my truck which now been sitting 15 weeks since build date at Oshawa still waiting to be shipped. No allocations concerns when my truck was built. Yet is sits with no updates available from GM logistics. Dealer cannot get updates. So before GM continues to give excuses, maybe they should fix their internal problems first. Terrible customer service.
July 24 and still no truck. Been sitting in Mesquite, Tx for two months. Truck is complete but your shipping hub won’t ship it to the dealership. No one at GM has helped. So sad. Bkbb85 order.
What Mary does NOT address is the completed vehicles sitting at distribution centers waiting for transport to the dealers. The Traverse that I ordered is marked as complete and has been sitting in a lot in Lansing, MI since March 25. Nobody seems to be able to address this issue. Nobody at GM or Jack Cooper Transport will return calls, or emails and my dealer can’t even get any information. Meanwhile, interest rates are rising, my trade-in is losing value with more mileage put on it and the vehicle is sitting in the elements. Who knows if rats or mice are infesting it and chewing on the wires, and birds are pooping all over it (most likely). Not very caring about their customers.
GOOD GRIEF I HOPE WHEN I GET MY TRAVERSE ONE OF THE IOUS WON’T BE FOR MISSING SEATS BECAUSE OF THE FOAM AND LEATHER SHORTAGE.
WHAT IS HAPPENING TO THE AMERICAN DREAM?
Been waiting 19 weeks since my truck has been built and still no info on when it will ship. No need to wonder why GM is losing money when their logistics department have no information each week. They send the most non-information email each week with no helpful details.
Hang in there. I finally had delivery of my Traverse on 8/4, picked it up the next day. Completed on 3/24, delivered to the the lot in Lansing, MI on 3/25, delivered 8/4 – 22 weeks waiting. The dealership was told that it would be delivered on 7/28, but it wasn’t. I did write a complaint on Jack Cooper to the Kansas City BBB on 7/11. They never posted it on the BBB website, but it seems that things started after I did that. I don’t have any proof of it, but maybe it did.
My 2022 Chevy Spark is in transit… I’m from Québec, Canada. It has been on transit since the week of july 25. The salesman told me back then that the car was in New York. He told me back then that I would have my car in the august-september period.
While waiting, I have been accumulating a good cash down hehe ( only positive side of the story )
Yeah .. patience patience hehe. In the meantime, I’m checking pics of it on the web
My dealer ordered a new engine for my 2014 sierra Denali in February 28th this year. Still no engine in sight. Is anybody talking about the valves collapsing issue. I have been told it is happening in new vehicles. Could this design flaw be part of the unwillingness to ship vehicles
To the person waiting-on the Sierra Denali replacement engine! My local dealer stated that the genIV 5.3 liter motors that had lifter issues all had either wrong oil or poor maitenance intervals. That said the g4 is also the shortest gen of all LS series engines. I would order an after market motor there are plenty to choose from with or without AFM. GM does jot build the engine anymore and the rebuilds probably occur over seas and therefore are at the mercy of COvid lockdowns abroad.