May 15, 2021 at 7:44 am #654702
I placed a deposit and was given a preliminary order number for a Yukon Denali 6 weeks ago. Each week I contact the dealer and am told that they havn’t received any Yukon allocations from the factory. Given that 6,000 Yukons are sold each month in the US, this response strains credibility.
I negotiated a good price below MSRP. Could the dealer be priortizing/submitting Yukon orders that will produce higher profits and siting on my order until the end of the 2021 production run when demand declines?
Im ready to request deposit return and move on.
Thanks for feedback.
- This topic was modified 4 weeks, 1 day ago by JimmyJoe. Reason: Typo
May 16, 2021 at 8:24 pm #654747
1100 and Dealer Allocation
This causes a lot of issues. When you place an order with a dealer, the status is 1100. UNTIL Chevrolet ACCEPTS the order, it just sits there at 1100. You don’t have an order with GM at this point. You only have a dealer requesting an allocation for a slot in the production schedule. Dealer Allocation is simple to understand – GM changed its model for producing vehicles a few years’ back. Dealers are now awarded allocation based on past performance, as well as other factors. If you are sitting at 1100 you are not in line yet for production. Your dealer MUST get GM to accept the order. When GM accepts the order, all the parts are available and will be allocated to your car build.
First, many dealers do not understand the allocation process.
Second, dealers are told at the beginning of every model year the number of units they are expected to order. This is their Guide Number, so called because it is intended to help a dealer “floor plan.”
Third, many dealers confuse Guide Number with Allocation.
Fourth, dealers are told every other Thursday how many Allocations (a portion of the Guide Number) they can use over the following two weeks AND this number of orders will be divided over two weeks.
To summarize, say the dealer is given 50 units as a Guide, which means about 1 unit every weekly ordering process from 2 units awarded in the every other week ordering process. If the dealer sells a dozen trucks every year, change the 50 to 12 and reduce the bi-weekly consensus to conform. By the way, this awkward system meets laws and demands of court decisions.
Note, many dealers accepts orders for more vehicles than they know they will be able to get.
May 21, 2021 at 6:02 am #655531
Your dealer isn’t running you around . You have a couple of issues at play, and hopefully dealer was up front with you.
-Unallocated sold order processing – That is what your dealer is having issues with. In normal circumstance a sold order is placed and typically pulled into production in a couple weeks regardless of what the factory has allocated to the dealer. Right now the dealer has to be allocated from the factory to build a sold order, this will cause delays in and of itself.
-Heavy constraint loads – Lets say the dealer gets an allocation for a Yukon. Now you have to weave through the constraints, the limitations of what equipment groups and options the factory is able to build for that production period based on supply. In your case Denali has rolling constraint off and on, Premium Pkg or Ulitimate Edition – national supply of say 50 each week, doesn’t mean your dealer was allowed to order it that week, so if your build has one…not getting accepted this week, Max trailer pkg, 0 available for build nation wide, so even if premium or Ultimate were OK, you probably got cut off by that.
Unfortunately there are a lot of people in your exact same boat, and all the dealers are playing with the same rules. The only real advantage you can give yourself is ordering from the biggest dealers, they are likely to have the most allocation (assuming they don’t have 30 Yukons on the lot they are trying to sell for 10k over sticker), but at the same time are likely to have the most demand on that allocation. Also doesn’t do away with option constraint issue, that one is on the semiconductor suppliers.
As far as them giving preference to someone else based on profit, possible, but not terribly likely. More likely is that there are a couple customers in their order bank just like you, some may be ahead in line, and the dealer is jumping hurdles to get them all in cars. Also that 6000 a month is the issue, thats 1900 GMC dealers all trying to restock their inventories at the same time.
- This reply was modified 3 weeks, 3 days ago by legend_of_me. Reason: added a line
May 21, 2021 at 6:18 am #655534
Thank you for the detailed explanations. I am trying to order the base Yukon Denali with the trailer package. Does the trailer package require one of the chips that is in short supply?
May 21, 2021 at 7:29 am #655538
As long as it isn’t max trailer pkg, no it shouldn’t. Based on the very general description of the order, I assume no Ultimate or Premium Pkg.s, you probably are in a better position than some to get this pulled. However you still have the Denali Constraint to contend with. The Denali has some base systems (Driver alert pkgs as far as I can tell) which are semiconductor affected, causing constraints to the trim level as a whole. GM is throwing what they can in to keep Denali production up as it represents the better 60% of the Yukon market, and Yukons represent high profit margin. For reference out of my last 3 weeks of Yukon allocation we have had, 2 had no Denali’s available to them, and the third allowed only one.
May 21, 2021 at 8:56 am #655550
Thanks again for the additional insight. My Yukon Denali does not have the Ultimate or Premium Pkg, but I did order with 4WD and Max Trailering Pkg. I am not aware of any other Trailer pkg. Below is the list of Max Trailer Pkg highlights. Do any of these features require an additional computer chip, one affected by the shortage?
– Integrated trailer brake controller
– Hitch Guidance with Hitch View
– In-vehicle Trailering App
– Trailer Side Blind Zone Alert
May 21, 2021 at 10:27 am #655577
I would need an engineer to answer that for sure, but given that the Max Trailer Pkg is constrained nationally (read as there are 0 going to built with that option that production week) it is a safe bet that yes one of the pieces of the Prograde trailering system requires a semiconductor that can not be obtained, and this is certainly not the first week with that constraint.
With that in mind, Denali is standard with a trailer pkg. The max pkg is basically buying you a bunch of trailering convenience items as you outlined. Capability wise I believe it gets you like 500 lbs of upgraded towing (don’t quote me on that I didn’t double check my references but I’m pretty confident). Frankly, if you don’t tow regularly or have been fine towing without this type of equipment before I would ask the dealer to drop that option and see what happens.
- This reply was modified 3 weeks, 2 days ago by legend_of_me.
May 21, 2021 at 8:49 pm #655745
Hmm. I need to investigate the standard trailer pkg features. Maybe that is sufficient.
June 1, 2021 at 8:02 pm #657194
Computer chip supply is low, Priory for chips is based on volume – Silverado & Sierra – – are the biggest – Nationwide. All other models are on hold. Friend lives near a former GM plant in the Saginaw area. The property if just huge vacant lot but is full of Camaro’s and Cadillac’s from the Lansing Plants. Partially completed vehicle w/o chips are being stored there and other places U of M campus etc. until supply ramps up.
The Arlington plant was shut down until May 18th due to chip shortage and severe ice storm in Texas. It was apparently down since mid march so everything is backed up.
- This reply was modified 1 week, 5 days ago by Z15.
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