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.
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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Have GM started building the 2023 Sierra Denali Ultimate? Will there be a mark up price on the Sticker price at the dealership?
Will there be a mark up price on the 2023 Denali Ultimate Sticker price at the dealership?
My Yukon xL was built april 4 2022 and I’m still waiting. My dealer says the price hasn’t gone down even though 2023s are out and my vehicle is now old .. sitting for months in the rain and heat of Arlington TX
Has anyone heard of GM compensation order for unfilled Silverado orders? $3000
Yes they are. I received an email from GM saying that they can’t fulfill my 22 order and gave me a rebate code in the email for $3000 towards a 22 Silverado on a dealership lot or a 2023 order.
I'm still waiting for a cheap compact sedan easy on gas with high tech manual windows, manual locks, manual mirrors, manual bum warmer, manual hot cold dial, and manual heated steering wheels maybe even with the manual transmission. I have no chip shortage upstairs, and they all come with the customer, not the dealer. Sounds like a gimme to produce with all those other chip shortages. I have to save all that other money for gas and food.
Bought Silverado 3500 4 door diesel dually in April 2022, still missing 3 chips (parking sensors a big one). Have never heard as much as a KOA from GM since then. Had I known would have a Dodge.
Good morning!
I've been following some of your reporting on GM's buildshy program. I'm very curious if any of these vehicles found their way to the dealership and into customers hands. We recently purchased a vehicle that is missing several standard features that was not disclosed by the dealership and I'm wondering if other consumers are experiencing the same issue.
Assuming you are able to drive and are not a snowflake, I am unsure why you did not negotiate to just remove the cost of those systems and go on down the road.
Look on the bright side... Mary did give you "manual" forward and backup assist equipment. Those are called mirrors. I can tell you that when you get your heated seats and steering wheel, you will be delighted! When turned up, you will get second-degree burns on your testicles and hemorrhoids.
are you serious... we all want to see if our vehicles can drive better than we can. As far as the heated seats and steering wheel goes... I waited for 62 years to try that stuff out and I was not going to miss out on that action. after all, I bought a Denali.
Heated seats and wheel are the best! Don’t give up!
I have a 2022 Acadia Denali... missing chips for second-row heated seats and for the auto backup assist. Imagine, not being able to back up my Acadia for 4 months now? (kidding, that's why mirrors were invented)
Mine is not affected by a seat issue recall.
I’ve been waiting on a Denali with super cruise, confirmed built but waiting for chips to complete. I have not yet bought it and taken delivery. They are not necessarily finishing higher trims first.
My 23 Camaro was built the end of June picked it up yesterday was on hold for chips for 2 months