New GM Numbers Show Just How Much Damage the Chip Shortage Ended Up Causing

Chevrolet has apparently been hit the hardest in the third quarter 6 photos
Photo: GM
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
General Motors is one of the companies that have been trying all kinds of approaches in an attempt to cope with the lack of chips, including temporary shutdowns of its assembly plants and shipping certain models without systems like start and stop.
But this doesn’t necessarily mean the chip shortage didn’t cause painful disruptions for its operations. New data revealed by the company show just how much damage it ended up producing as far as the actual production output is concerned.

More specifically, General Motors says it managed to sell just 447,000 vehicles in the July – September quarter, down no less than 32.8 percent from the same period a year ago. This was obviously caused by its reduced output, as General Motors suspended the activities at several facilities because of the semiconductor crisis.

Needless to say, GM’s brands have all been affected by this struggle, with Chevrolet seemingly hit the hardest. The company recorded a drop of no less than 36.1 percent in year-over-year sales.

Since January, General Motors has sold a total of 1.8 million vehicles, and the number aligns with the one reported a year ago for the same period. However, this comparison isn’t by any means optimistic, especially as the third quarter of 2020 was affected by government restrictions and lockdowns affecting not only the manufacturing process but also the supply chain as well.

At this point, however, General Motors is looking into various other ways to reduce the disruptions of the global chip shortage over its operations, and one way to do this could be simplifying its supply chain to work more effectively directly with foundries.

In other words, GM wants to streamline its relationship with semiconductor manufacturers, therefore hoping that a simplified chain would reduce the likelihood of supply disruptions in the short term.

General Motors is more optimistic about the fourth quarter, explaining that the chip inventory is improving and the production capacity could return to normal levels.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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