THE GLOBAL MICROCHIP SHORTAGE IS CAUSING SERIOUS ISSUES FOR THE AUTOMOTIVE INDUSTRY. GENERAL MOTORS JUST ANNOUNCED IT IS HALTING PRODUCTION OF TWO OF ITS TOP TRUCKS... THE CHEVY SILVERADO AND THE G-M-C SIERRA.
WE'RE LOOKING AT THE SHORTAGE'S IMPACT ON THE INDUSTRY... WITH COLORADO AUTO DEALERS ASSOCIATION PRESIDENT AND CEO TIM JACKSON.
INFO FROM KELLEY BLUE BOOK:
--General Motors will halt most North American production of its 2021 Chevy Silverado and 2021 GMC Sierra full-size pickups next week. Plants in Michigan, Indiana, and Mexico will be temporarily idled. Production is expected to resume the week of August 2.
-- The Silverado and Sierra are among the most profitable vehicles in the world. The two share most of their parts and are functionally different trim levels of the same vehicle. If you considered them as a single model, they’d be the world’s best-selling vehicle.
-- GM counts their sales separately. But, even by that standard, both make the top 10 best-selling vehicles in America with near-perfect consistency.
--Automakers cut back their orders from chip factories early in the COVID-19 pandemic as new car sales slowed. Consumers worldwide then went on personal electronics buying sprees as they stocked up on the devices they would need to work and attend school remotely. That kept the limited number of chip factories busy. When automakers stepped up their orders to accommodate increasing sales, chipmakers couldn’t supply them quickly enough. Car factories slowed and haven’t recovered. Some estimates say they won’t until next year.