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General Motors Has Chip Shortage Updates, Pretty Bad News

Guessing when the chip shortage could come to an end isn’t by any means easy, and General Motors is one of the companies that are trying to come up with an accurate forecast simply because its entire business depends on it.
GM doesn't expect the chip shortage to be over this year 6 photos
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Like the majority of other carmakers out there, General Motors has been hit very hard by the very constrained chip inventory.

And after so many rivals said they expect the crisis to ease off in the second half of the year, General Motors was supposed to reiterate this message as well.

But CEO Mary Barra has bad news for the world. Barra has recently been cited as saying that the “huge availability of vehicles” is not something people will end up seeing anytime soon, with constraints in products still happening as we speak.

More specifically, the chip shortage is still having an impact on the manufacturing of cars, and Barra says there’s almost no chance to see the whole thing coming to an end this year.

In other words, GM’s CEO believes the chip shortage will last into 2023, which means the world might have to struggle with the huge waiting times and the high prices for approximately one more year.

Experts, however, warn that a change for the end buyers may not take place until 2024. This is because once the chip shortage comes to an end, most industries out there would need additional time to return their production schedules to pre-2020 levels, which in turn means the constrained inventories would take time to rebuild.

But on the other hand, General Motors still expects things to improve this year, with the auto production to go up by as much as 30 percent in 2022 versus 2021.

The prediction seems to be based on the same late-2022 recovery in terms of chip inventory, though it remains to be seen if the lockdowns in China and the geopolitical tensions in Europe could lead to more disruptions in the manufacturing of cars.

 
 
 
 
 

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