GM Built 95,000 Vehicles It Can't Sell

 SOURCE:

GM Built 95,000 Vehicles It Can't Sell (slashgear.com)

 GM is no exception to the list of car manufacturers that rely on computers in their vehicles, and a quarterly earnings report on July 1 revealed that the number of unsellable vehicles currently in its inventory has reached nearly six figures. This is due to the ongoing semiconductor shortage. While GM is able to construct the chassis of its vehicles with all other necessary mechanical parts included, it's unable to fit them with their automated systems, making them undriveable.

GM sales are still increasing

Back in September 2021, GM was forced to shut down entire North American manufacturing plants due to the semiconductor chip shortage, given that the company would simply be generating more deadweight for their limited inventory space by continuing to manufacture more of these unfinished cars. Some manufacturing plants, such as its Arlington Assembly and Flint Assembly, have continued to produce vehicles despite the semiconductor shortage. Certain other manufacturers, such as Ford and FCA, have been idling since January 2021.

In its earnings report, sales across all GM-owned brands are not expected to slow down any time soon, despite the roughly 95,000 vehicles that can't be sold. GM noted in an SEC filing report from July 1 that these vehicles will be finished in the latter half of 2022, as semiconductors begin to flood back into the market. This could happen sooner, as reports since late April have claimed the shortage is now down to a transport logistics issue rather than a silicon supply issue.

Demand for certain cars is still high

GM highlighted in its report that its third quarter could provide a strong boost to its market share, reflective of growing demand for its vehicles. The company cited a 29% year-over-year increase to sales figures across commercial, government, and rental sectors.

The car manufacturer broke its projections down further, claiming that the commercial demand for midsize pickups saw an increase of 65%, while other vehicle groups enjoyed a 12 to 14% boost. Electric vehicles were also mentioned in the report. Over 7,300 electric vehicles were sold in the second quarter of 2022, which included the GMC Hummer EV Pickup, Chevrolet Bolt EV, and BrightDrop Zevo 600 van. However, these sales figures might have looked more hopeful for the future of EV, if the semiconductor chip shortage not been an obstacle. As of June 30, the company reported 247,839 vehicles (or about 152,839 after you subtract the 95,000 unfinished vehicles) were stored in its collective inventory, many of which were already on their way to retailers.

Interesting article at the same website:

12 Cars That Were Way Ahead of Their Time

https://www.slashgear.com/795398/12-cars-that-were-way-ahead-of-their-time/?utm_campaign=clip