Chip Flow Increasing for GM
An increased flow of semiconductor chips allowed the Detroit automaker to operate every plant this week.

General Motors
General Motors Co. is seeing an increased flow of semiconductor chips, allowing the Detroit automaker to operate every plant this week. The auto manufacturer has even scheduled overtime at several plants in recent weeks.
“We are currently seeing a better flow of semiconductors in our supply chain, our North American assembly plants are now back to running regular production, and volumes are increasing in the fourth quarter,” reported GM spokesman Dan Flores in a statement.
He added, “We have made some weekend overtime scheduling adjustments at several of our plants in November and December. This includes Arlington, Ft. Wayne, Wentzville, Lansing Delta Township, Lansing Grand River and Silao, which have been working select weekend overtime shifts.”
GM reported its Wentzville, Missouri, mid-size truck plant is down for several weeks for “construction updates” in departments that support production of its next-generation mid-size trucks. The Orion Assembly, the Chevrolet Bolt EV and EUV plant, also is down through Jan. 28 as the company addresses recalls and provides battery supply to the affected vehicles.
Automakers have battled the semiconductor shortage since January and industry leaders predict the effects will last into next year. Still, analysts at Fitch Ratings Inc. report they expect to see gradual improvement in semiconductor supply in 2022.
“Semiconductor availability should modestly increase sequentially through 2022, but supply chains remain vulnerable to potential event risk because of the trajectory of the pandemic,” the firm reported.
The shortage led automakers to halt production at some plants and limited inventory at U.S. dealerships. Tight inventories pushed prices to record-high prices. In October, average new-vehicle prices surpassed $46,000, according to Kelley Blue Book.
Fitch predicts “the supply/demand mismatch that led to very strong vehicle net pricing and mix in 2021 will continue” in the first half of 2022. The firm noted that increasing production and rebuilding of inventory levels in the second half of 2022 could cause automakers’ “operating margins to come under pressure.”
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →