Photo: GM
General Motors is one of the companies that have been hit really hard by the current semiconductor shortage, and just like everybody else, it’s been trying all kinds of approaches in an attempt to minimize the disruptions in its daily operations.
All these efforts sometimes helped, but more often than not, they did little to prevent sales in certain markets from going down.
South Korea is just the living proof, as the company keeps reporting declining sales pretty much every single month when compared to the same period a year ago. This is a sign that the chip crunch is worse in 2022 than it was in 2021 despite all the investments in capacity and all the other approaches we told you about.
Last month, GM Korea sold a total of 15,700 vehicles in the local market, which is down from a little over 16,400 units in May 2021. The difference isn’t necessarily huge, but when comparing the performance in the first months of the year, it’s all getting worse.
GM Korea shipped over 127,900 units between January and May 2021, but this year, the local sales declined by no less than 25 percent to just 96,000 vehicles.
General Motors blames the chip shortage for all these sales drops, and without a doubt, this is one of the main reasons the numbers are continuously going down.
Unfortunately, neither GM nor anyone else in the car market can do anything about the chip crunch. Tech giant Intel has recently revealed that the chip crisis wouldn’t come to an end until 2024, explaining that manufacturers are now battling another shortage impacting the production of equipment required for making semiconductors.
In the meantime, many carmakers out there expect the chip inventory to improve in the second half of the year, and if this happens, then both the production of cars and the sales would receive a much-anticipated breath of fresh air until another wave of the crisis come at full power in 2023.
South Korea is just the living proof, as the company keeps reporting declining sales pretty much every single month when compared to the same period a year ago. This is a sign that the chip crunch is worse in 2022 than it was in 2021 despite all the investments in capacity and all the other approaches we told you about.
Last month, GM Korea sold a total of 15,700 vehicles in the local market, which is down from a little over 16,400 units in May 2021. The difference isn’t necessarily huge, but when comparing the performance in the first months of the year, it’s all getting worse.
GM Korea shipped over 127,900 units between January and May 2021, but this year, the local sales declined by no less than 25 percent to just 96,000 vehicles.
General Motors blames the chip shortage for all these sales drops, and without a doubt, this is one of the main reasons the numbers are continuously going down.
Unfortunately, neither GM nor anyone else in the car market can do anything about the chip crunch. Tech giant Intel has recently revealed that the chip crisis wouldn’t come to an end until 2024, explaining that manufacturers are now battling another shortage impacting the production of equipment required for making semiconductors.
In the meantime, many carmakers out there expect the chip inventory to improve in the second half of the year, and if this happens, then both the production of cars and the sales would receive a much-anticipated breath of fresh air until another wave of the crisis come at full power in 2023.
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