General Motors is encountering difficulties in building and delivering new vehicles to dealers. Several factors contribute to these challenges.
Firstly, the global chip shortage has been a significant headache for automakers, including GM, for the past two years. This shortage alone has resulted in approximately $2 billion in lost sales for GM this year.
Secondly, the COVID-19 pandemic has disrupted supply chains, including those for auto parts. As a consequence, GM struggles to obtain the necessary parts to manufacture vehicles.
Moreover, outbound logistics present further obstacles. Even when GM manages to build vehicles, transportation to dealers becomes problematic. Shortages of truck drivers and congestion at ports contribute to delays.
Consequently, GM has been compelled to reduce production at some plants and postpone the launch of new vehicles. Additionally, the company has resorted to offering incentives to customers to stimulate sales of existing stock.
GM is actively working to address these challenges. However, it will likely take some time before the company can regain its pre-pandemic pace of vehicle production and delivery.
As a result, prospective customers seeking to purchase a new GM vehicle may experience longer waiting times. Nevertheless, GM expresses confidence in its ability to eventually meet the demand in the long run.
