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General Motors Admits the Chip Shortage Just Doesn’t Go Away

General Motors keeps battling the chip shortage in pretty much every country, and while in the United States, it has recently stopped the truck production at Fort Wayne in South Korea, it’s still struggling to find a way to stop the declining sales.
GM sales go down in South Korea as well 6 photos
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The latest figures shared by the company for the South Korean market paint a very sad picture, as General Motors recorded another drop in June.

However, the degree of the decline depends on how you look at the numbers.

In June, for instance, General Motors sold a total of 26,688 vehicles in South Korea, down from 26,876 units in the same month of 2021. Put this in percentage and, you get a 0.7 percent decline. Sure, the numbers aren’t the best, but the minor drop isn’t necessarily the end of the world.

The horror picture is painted by the numbers concerning the first six months of the year. General Motors sold 122,756 vehicles between January and June 2022, down no more, no less than 21 percent versus the same period a year ago.

Unsurprisingly, the American carmaker has cited the chip shortage as the main reason why its sales went down, as the company is still struggling to find a way to reduce the disruptions the constrained semiconductor inventory keeps causing.

General Motors, on the other hand, is one of the companies that aren’t trying to guess when the chip shortage could come to an end, though a more or less significant recovery is still expected in the last months of the year.

But according to tech giant Intel, the constrained inventory wouldn’t be resolved until 2024, with some market sectors to therefore face difficult conditions for two more years. It remains to be seen if carmakers can resolve the lack of chips before 2024, but for now, it’s pretty clear the end of the crisis isn’t yet on the radar.


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