GM parking over 1000 vehicles a day due to semi-conductor shortage – UPDATE

UPDATE, August 11: More than 1000 General Motors-built vehicles are being taken from the production line to a huge car park every day as the company struggles with a lack of computer chip supply.

According to Michigan publication Detroit Free Press, vehicles are rolling off the production line and straight onto a car carrier where they are then taken to a large facility to be stored, awaiting delivery of semi-conductors which are in global shortage.

As of last week, over 10,000 GM SUVs were awaiting chips in storage facilities across Texas as over 1000 incomplete vehicles leave its plant in the town of Arlington every day, adding to the backlog of unsold cars.

The situation continues at the Wentzville plant in Missouri where over 9000 mid-size pickups sit dormant awaiting completion, however the same plant was able to clear a backlog of over 30,000 vehicles earlier this year, delivering all completed units to dealers.

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The story to here

July 29: General Motors has chosen to prioritise assembly of its full-size pick-ups as it continues to grapple with the ongoing semi-conductor shortage.

The decision comes a week after GM essentially paused production of its best-selling model range, which includes the Chevrolet Silverado and GMC Sierra. The company’s Fort Wayne and Silao plants are currently idling, while the Flint base has been reduced to one shift per day. Full business as usual is expected to resume at all three locations on August 2, reports Automotive News.

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Pick-up production will come at a cost to other GM model lines, with not enough semi-conductor chips to go around. Some SUV assembly lines will have their idle durations extended, including at the Lansing Delta Township, Michigan, facility. It has received an extra week of downtime, which has stopped building of the Buick Enclave and Chevrolet Traverse SUVs.

The Lansing Grand River, Fairfax, and San Luis Potosi plants have received three to four-week extensions on their idle periods, though Camaro production at Grand River remains unaffected. Kansas City’s Fairfax site has been idling the longest, having been stood down since February. The facility is responsible for Cadillac’s XT4 SUV, and the mid-sized Chevrolet Malibu.

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The resumption is good news for Australian Silverado buyers – though pick-ups made after June 7 no longer feature stop-start technology thanks to the shortage. GM’s next local offering, the C8 Corvette, has faced multiple production pauses at the Bowling Green factory but has been back on track since June 7.

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Semi-conductors (more commonly known as microchips) have faced shortages since last year, when the car industry bounced back from factory closures faster than expected. Automakers had cancelled many chip orders, leaving an insufficient supply when production resumed.

Many American companies have been forced to partially assemble cars as a result, storing them in vast facilities until they can be outfitted with the chips required.

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The problem was exacerbated when Renesas, the third-largest semi-conductor in the world, experienced a major factory fire in March 2021. It took over three months for the company to achieve pre-blaze levels of production. Top players such as Stellantis boss Carlos Tavares believe the shortage will continue into 2022.