Ever since the COVID-19 pandemic swept across the globe – and brought along the ensuing supply chain issues and shortages – logistics have become increasing difficult for automakers to navigate. Now, GM Chair and CEO Mary Barra has stated that logistics remains General Motors’ biggest difficulty at the moment.
During an interview, Barra commented that vehicle logistics is the biggest challenge GM currently faces. Despite having a plethora of vehicles built and ready to go, Barra stated that it’s difficult to field enough commercial trucks and railways to facility delivery to dealerships.
It’s worth noting that Barra also mentioned the need to build factories closer to the aforementioned trucks and railways.
This recent development follows previous coverage from GM Authority that the Detroit-based automaker has been cutting back on its production plans in response to a rail car shortage. In fact, some estimates show that there are approximately 70,000 new vehicles waiting to be shipped to dealers. Other reports indicate that there are thousands of units of the Chevy Silverado and GMC Sierra in limbo near the GM Fort Wayne plant in Indiana.
Notably, this shortage could have impacts beyond the automotive industry, as food and grain deliveries have been affected as well.
In an effort to help alleviate this logistics problem, General Motors has been taking actions into its own hands as of late. As GM Authority reported back in January 2023, The General announced at a dealer representatives meeting that it was considering buying 400 heavy-duty trucks that its employees could then use to deliver finished vehicles directly to dealerships.
With the Detroit-based automaker expecting to recover to full production capacity by the end of the year, a move like this would help to alleviate logistics challenges until the commercial trucking and railway systems are able to recover.