GM Cleared Out 20,000 Incomplete Vehicles In The Last Month
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In early July, GM revealed that it was sitting on roughly 95,000 incomplete vehicles as a result of its ‘build shy’ strategy, which has carried the automaker through the global microchip shortage. The automaker has been working hard to clear out these unfinished vehicles, which took a large bite out of its Q2 profits as they languished on vacant lots, with the automaker dwindling the backlog down to roughly 75,000 units.
Speaking to The Detroit Free Press, GM Chief Financial Officer Paul Jacobson said the automaker was caught slightly off guard as it was faced with a shortage of microchips toward the end of the second fiscal quarter, forcing it to partially complete 95,000 vehicles without certain electronic components and store them. The automaker said in its Q2 2022 earnings report that it would recognize revenue on these vehicles throughout Q3 as it brought them back into the plant for completion. It has so far cleared 20,000 of these stored vehicles, with Jacobson describing this result as “tremendous progress” in only one month.
“We’re leaning in very, very aggressively to get those vehicles to market because the demand is there,” Jacobson said of the remaining 75,000 unfinished vehicles it has in its inventory.
Jacobson also said GM has planned for future chip shortages by reducing the variety of chips that it uses in its various model lines, as well as reducing the number of chips it uses in them overall. He said that by the end of the decade, GM vehicles will use only three separate chip families, which will likely make its chip supply chain less fragile.
Paul Jacobson
While chips are a contributing factor to low inventory levels at GM dealers, they aren’t the only reason why it’s difficult to find the right vehicle. Automakers have also dealt with shortages of other components, including plastics and seat foam made from petroleum products, while shipping delays have also caused backlogs at plants. Jacobson told the Free Press that GM has been spending “a lot of money” on priority freight to ensure it can get vehicles to dealers, but expects shipping wait times to normalize throughout 2023 and 2024.
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It would be nice if gm would ship the vehicles that customers have ordered and have been waiting on for months instead of dealer stock vehicles. My dealer told me they get trucks in everyday but mine has no ETA! Very frustrating
What’s different on the truck you ordered as compared to what the dealer is getting in for stock?
I’d guess most of the 95k trucks GM had in storage are customer orders versus dealer stock. Especially the half ton trucks.
What dealer stock?
I ordered a GMC van almost a year ago. Nothing from them. I’ve had just about enough of the bs from GM and it’s dealers. There is a rail yard by me and there must be 10000 trucks sitting there, if they would build the ordered vehicles that would make the most sense. There is a dealer close by that had a Colorado Z71, stickered at $40k. I stopped in to see it. Their first scam was a wax job they called paint protection along with key protection and ding and chip repair for close to $2000.00 and then wanted to take on $5000.00 more because there aren’t any in stock close by. The sales gerbil asked how much over sticker I would pay. I explained I never pay sticker and I’m not starting now and went to another dealer.
As a dealer I can tell you they can’t even build the ordered vehicles. They are cancelling trucks that are already sold to customers by the thousands. I have 100+ commercial trucks on my lot, every one was sold before it arrived and now I am selling trucks that haven’t even been built.
Plus its even harder to get Fords through our two Ford dealerships and RAM is getting as bad. Now is issuing VINs but then tell you they don’t know if they will build it. Plus remember GM isn’t just making trucks and sending them to dealers willy nilly. The trucks they build have been ordered by the dealership. I expect between my three GM dealerships I’ll be 1,000 shy of what I have the ability to sell this year. Speaking of vans, dealerships can’t order them, they have to receive permission to order them for a fleet customer and most of those are denied. Allocation is required for retail vans and a dealership will be lucky to get one this year.
because even 5 years ago Wentzville could not make enough Colorados and GM did not see fit to move the Savana vans to another location or redesign and end production altogether. kind of too bad the Brightdrop EV van does not have a way to plop an ICE motor and drive train in so the Vans people might want are more competitive to Fords Transit and the demand for half cabs were all that Wentzville needed to cover.
GM needs new leadership now!
GM needed new leadership the day it thought to give Barra the position. CEO of GM is a side hustle for her. She’s too busy as a Disney Board Member running “female initiatives” and rubbing elbows with Kathleen Kennedy.
I’m still waiting on a GM vehicle I ordered in mid June. Still no ETA. I followed up with the dealer Aug. 1st. and was offered my deposit back but not given an ETA.
I second this comment. It’s one of the most frustrating things ever. Not to mention the 20,000 that were complete…are those customer cars or??
I wish it was months I have been waiting for about a year. Still keeping my head up that I will get it before 2023
maybe they feel they have you (and rest of us) on the hook so want to complete vehicles that people have not committed to yet so they can get those sold?
or maybe our vehicles require more chips than others so they would rather allocate them to more vehicles that are lower end and don’t need as many chips per vehicle…not sure if that’s a thing (the chips would need to be interchangeable)
locally its the higher end trims that are not being delivered. they are delivering trucks with less options pretty regularly
My dealer is still selling campers and RV’s no new trucks.
Just what I want, a 65000 dollar truck that’s incomplete.
I would take a 45K truck without the adaptive cruise control, Blindspot monitoring and I really don’t need heated and cooled seats or really a lot of other chip requiring items.
Where I live, those cooled seats are a godsend. But they do feel a little weird at first.
A cool nut bag is never a bad thing!
The problem is their still building shy they made clear vehicles out but they keep adding more to the storage lots my vehicle was built June 27th sitting on hold waiting on parts
Mine was built on June 8, every week I check with dealer, they don’t know where it’s even at! GM layed an egg on this deal.
It’s a shame that GM can’t manage its supply chain. The new Silverado is wildly popular here in the Midwest but they just can’t be found so people buy something else. Fortunately my Silverado is doing great so I can wait for things to get back to normal but I don’t want to wait forever for a new truck!
GMC Fan I ordered LTZ that doesn’t have multi flex tailgate, 4×4, running boards, heads up display, and camera mirror. Also my build came out to 56k instead of 63k which is what the ones on dealer lots are averaging
Seems there are differences in packages that you ordered versus what’s in stock. Also, maybe you ordered different motor. Something has triggered your truck to be held up. It sucks but every manufacturer is having the same issue.
Your alternative is to cancel the order and sit back and wait a couple years for stock to start building up again.
Frankly, I’m shocked your dealer has stock. I haven’t seen new trucks on a dealer lot in months.
No new trucks here either.
I had a local dealer call me Monday and said he had 3 LTZ’s on the lot but they weren’t the color I wanted and I didn’t want to pay 63k and the dealer add ons that he said they add to every vehicle
Yeah, me too, that’s the first thing I told the salesman when I bought my new Equinox, I will not pay for paint or fabric protection. It’s a scam.
I’d just like to know when GM is going to honor their customers that did bite the bullet and purchase a vehicle during their “build shy” strategy short a microchip. Parking sensor retrofit in my case on my 2022 Silverado HD. Have not heard one word about that unless I missed it somewhere.
My wife is waiting on 2 different chips for her ’22 Blazer…one for the heated seats and one for the rear parking sensors. She leased it back in March and her dealer told her that one chip was supposed to be in early this summer and the other was supposed to be in around Christmas. She just called them and they have no ETA or idea why the first chip hasn’t come in yet.
I ordered a Blazer on June 19th. Left deposit with the dealer. At the time they said the vehicle was in production. Called for status Aug. 1st. and they had no ETA. and the dealer said GM doesn’t provide them with status updates.??? At the time I placed the order in June I was told the vehicle should be in by the end of July.
Chevy Colorado, I’m still waiting on chip for parking assist now waiting over a year.
My 2022 Acadia Denali is waiting for the heated second-row seating chip and the auto backup assist chip… Imagine, having my Acadia and not being able to back it up for 4 months already? (kidding)
I see alot of fleet vehicles being sold on lots. People working from home and through internet meetings don’t need company transportation. Great time to force purchases of over stocked white fleet vehicles at high prices.
I would buy another WT, but I don’t want white. My current WT is red and its a great truck.
The airport depots of rental cars are full and overflowing with everything under the sun. They are building them and shipping them. All brand new. Row after row.
For all the idiots who bought trucks incomplete including myself. Will GM complete them, or will we all be participating in yet another class action lawsuit against GM? Hopefully they make it right for us.
They did “make it right” by giving you a measly credit on the window sticker that probably reduced your monthly payment by about 60 cents. I totally get where you are coming from…waiting on two chips for my wife’s Blazer. The buttons look nice on the dash though.
Still waiting on my heated seats and steering wheel on AT4 I bought in January, Would be nice to have them before the snow flews here in Wisconsin. Already went through one winter without them.
I got the heated steering wheel in my wife’s Equinox before the chip problems. That’s my favorite option.
The first time I backed up my 2022 Acadia Denali, I found out about the testicle tickling option… Back up close to an object and the seat vibrates, tickling your junk… I had no idea that GMC sold sex toys until that moment…
I fell ya I live in Canada heated seats and steering wheel would be great. I could also buy driving gloves and turn up the heat back up camera is great but have we lost the ability to back up and park on our own and I’m waiting on a 2022 RST
I just got my cooled seats (only thing I was missing when I got my truck in October 22)
I had to settle with a 5.3 because the 6.2 is currently on restraint. Paying 50k difference after trade on a truck it should be built Exactly how you want it.
You could have walked away. As long as people keep buying what they don’t want, GM will keep building what people don’t want because they know that people will buy it. And pay a premium for it. Not me. I will run my existing fleet to the axles before I buy something just because GM says that I have to.
Yup me too, I have 3 GM’s now and I am waiting for things to normalize before I purchase anything new.
Dang I got lucky. The truck I had on order (5.3) never came in and got a 6.2 by chance that came in. That was in Oct 22
And how do you like the power of the 6.2. I own 7 Silverado’s with them and use them for their intended purpose of pulling and I have no problems. Watch out though, between 80,000-120,000 miles the DOD lifters will drop on you. Usually cylinder # 4. One of my trucks has been in the dealership for two years now waiting on parts to repair that very issue. I have instructed them to delete the DOD lifters which I should have done long ago.
After running the truck for awhile when I get it back, I will make a decision on whether or not to delete the DOD lifters in the rest of my Fleet including my Tahoes which are 5.3.
And we will probably have to wait till hell freezes over to get the complete parts that we paid for… I say we start a class action law suit to get what we paid for.
Where and when
I might be wrong but I believe everything ran smoother when EVERYONE was in the office working. GM needs to get its employees back in the office and see if things will work better because these are the people that are responsible for a lot of paperwork on getting the orders filled.
GM needs new leadership!
I think kicking Mary Barra ASAP out of her GM office would suffice.
Poor mice have to find a new home, u can keep those trucks.
Mine came “rodent free”
I ordered my high country December 16 and it was built in Mexico in March and has been sitting in the shipping lot ever since. Kind of frustrating.
That’s because it’s an “illegal”…
I ordered a High Country back in March and GM canceled it and told me to contact my dealer. The dealer told me that my order was being converted to a 23 model.
There is no excuse for the inept brain trust (Mary Barra) who decided that selling “build shy” vehicles was a great idea!! Sure, it’s a wonderful idea for “her” bottom line. However, it totally screws all of the loyal GM customers who are spending $50K+ of their hard earned money, on what use to be a dependable quality product!! I am so thankful that my 2021 Yukon XL Denali Ultimate “has” all it’s parts. I was lucky enough to take delivery in Dec 2020 just before the chip crap hit the fan! I usually buy a new one every two or three years. That practice has come to a complete stop!! I’m sure there are many people who feel the exact same way!! I would not even think about ordering anything, until all of the supply chain & microchip crap has been resolved. My heart goes out to everyone still on the hook & waiting for their vehicle to arrive (or missing parts for the one they already bought). I can only hope that when you finally take delivery of your vehicle that it actually has all of it’s components/parts. This is NO way to run a company Mary!!
You buy every 2 to 3 years??? My last one lasted 16 years…
Yes, I have since about 1994. It’s usually every 3 years (when the warranty is winding down). All during that time I also owned a 1969 350SS Camaro. I only recently sold that after owning it for 27 years. Some things are worth keeping, and I wish I never sold it.
I am getting too old, I can’t wait 16 years for anything! Haha.
I’m confused by your comment. People are probably just paying a deposit to have it built, like $1000. I don’t think any of the built shy trucks are actually “sold” yet. GM is on the hook for those until they are delivered. I would be surprised if people are actually buying their truck before it is delivered.
Unfortunately, I have read previous comments (on this & other posts) from people that have received “build shy” vehicles.
They just get about a $50-$100 credit, for the missing item(s), and are sent on their way, with absolutely no idea when/if their item(s) will ever be available or installed.
Okay I see. There are vehicles that are missing one or two features until further notice for retrofit, but nobody has paid for a vehicle that is currently sitting in a rail yard. I see the distinction you were getting at.
We bought a leftover 2020 Equinox LT in Feb 2021, $31k sticker before the chip shortage at $6200 off after rebates & discounts. Dealer now has identically equipped 2022 on lot at $1200 of sticker. We were lucky to buy before chip mess. Our largest dealer in our area has been selling every much over sticker for months, especially Silverados. He usually has fewer than 20 new vehicles in stock and most in-transit pickups already sold. Major motorhome builder is in our local towns and their build shy units are everywhere on every lot available. It’s not just cars. Supply chains are a mess.
Same here, we got a fantastic deal on a 2019 Premier Nox for about $6k off MSRP! I am waiting for those deals again!
Yes I really enjoy paying full price ….oops I mispoke they( GM) knocked off $75.00 for my incomplete 22 Seirra !
I like the truck but when do I really get my chips ??? Im headn for SW Fla in Fall ! I have a nice hot @ss already !!🤣🤷✌
Ahhh, you got the black interior, didn’t ya??? I have the black interior too but let me tell you that when you do finally get your chips your hemorrhoids will be frostbitten and your junk will stay cool…
Would be interesting to confirm if all those incomplete trucks are the old interior design. If so would be a hard sell compared to the upgraded interior truck. Also they need to get them out before the model year changes running out of time!!!
Wait for the deals to come late 22-early 23. Those new “old” trucks will be marked down.
they are selling the ‘old’ versions as “LTD”
and the size of the infotainment screen is the biggest tell
We bought our 2022 Traverse 5 months ago and like everyone on here we are still waiting on our chips. My question is why is if there are chips available to build new vehicles why are they not sending chips to dealers so they can get started installing them. GM; WE as customers will only stay loyal to you if you are loyal to us. Jerry!