Chip Shortage Eases, GM and Ford Expect to Clear Backlogs by End of Year (2024)

FAQs

How many GM vehicles are waiting for chips? ›

GM managed to ship out three-quarters of its 95,000 vehicles awaiting chips and other parts during the third quarter. This led to a 37-percent increase in net revenue from the same period in 2021.

Since the chip scarcity began, nearly 18 million automobiles will no longer be produced by the end of 2023. Ford Motor's poor quarterly results demonstrated that the worldwide semiconductor shortage is still causing problems for automakers, but some are more affected than others.

According to a report from CNN, Ford revealed that it is currently holding on to 40,000-45,000 large trucks and SUVs there are still waiting on necessary components to complete production. In February of 2021, the semiconductor shortage was so bad that Ford had to temporarily halt F-150 production at two U.S. plants.

This agreement supports GM's strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. With this strategy, chips can be produced in higher volumes and are expected to offer better quality and predictability, maximizing high value content creation for the end customer.

Will the chip shortage remain in the past? We're nearing the end of the supply crunch after more semiconductor capacity came online in 2022 … Looking ahead, we don't predict any major constraints. Chip supply began to improve in 2022 and looks set to continue through 2023.

DETROIT (AP) — With the global shortage of semiconductors still crimping U.S auto production, General Motors has signed a deal with chipmaker GlobalFoundries to dedicate part of an upstate New York factory to supply the automaker.

BMW, Mercedes-Benz, Renault and Nissan have not been affected so far this year by the shortage, according to a report this month from Bank of America Global Research analysts, citing data from S&P Global. But the positive outlook has not spread to every automaker.

Why? Semiconductor chips require lots of skill to create, and not just any manufacturer can produce them. Many industries rely on the same limited labs, Labs require experts to craft each chip, and pandemic restrictions meant fewer workers could operate at any given time.

Toyota. Asian automakers have been among the hardest hit by the chip shortage, and over two years since supply issues first began to arise, Toyota has claimed it's unable to say when the crisis will end.

The same goes for trucks, as seas of chipless Ford Super Duty pickups at Kentucky Speedway have repeatedly proven. The first stockpile made headlines in May 2021, and while Ford eventually completed those and delivered them to customers a few months later, a new batch replaced them in September 2022.

Is GM selling cars without chips? ›

G.M. noted that its factories were holding 95,000 vehicles manufactured without certain electric components that were in short supply because of the chip shortage. At times automakers have dropped some features from vehicles because they or their suppliers didn't have the chips they require.

Key suppliers include NXP Semiconductors and STMicroelectronics in Europe, Renesas Electronics in Japan, and Onsemi and Microchip Technology in the United States. Those companies own factories to make some chips they design, but they also subcontract some of the manufacturing.

GM and GlobalFoundries, a global manufacturer of semiconductor chips, on Thursday announced a long-term agreement where GF will make the key components in chips, including the semiconductor wafer.

Barra says that General Motors is "working through" parts shortages caused by the global pandemic. It's safe to say that it hasn't been easy to buy a brand new car for the last few years.

General Motors has signed an agreement with tech manufacturer GlobalFoundries to make semiconductors for GM's various electronics suppliers. The electronic components will be made in GlobalFoundries facilities in upstate New York.

This allows GM to keep production lines rolling and get the vehicles into customer hands as soon as the materials needed are secured. At its height, GM had a 95,000 backlog of vehicles waiting to be finished, and now, the Detroit-based automaker has less than 25,000 vehicles left waiting.

Their data shows that globally, about 10.6 million vehicles were taken out of production plans in 2021 due to the semiconductor shortage. That impact was reduced to 4.4 million vehicles in 2022, and in 2023 it's expected to be reduced to 2.8 million.

Total 2022 Projected

At this rate we would expect to see ~3m vehicles lost to the chip shortage in 2022. Last year we lost nearly 11m. The first projection for 2022 estimated that globally the chip shortage would take 767,700 vehicles out of production. That number has increased 23% in January.