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GM Set to Ramp Up Vehicle Production as Chip Shortage Eases

» Posted July 19, 2021Resources | Share This Post

General Motors is seeing the light at the end of the tunnel after a global chip shortage slowed car production and increased prices on dealership lots

The company says it plans to increase shipments of pickup trucks and other vehicles to dealers in the weeks ahead, the New York Times reports. The move is a sign that the shortage of semiconductors used in cars and a wide range of tech products is starting to ease.

“The global semiconductor shortage remains complex and very fluid,” Phil Kienle, G.M.’s vice president for North America manufacturing and labor relations, said in a June 3 statement released by the company. “Customer demand continues to be very strong, and G.M.’s engineering, supply chain and manufacturing teams have done a remarkable job maximizing production of high-demand and capacity-constrained vehicles.”

The company said it expects to see “significantly better” financial results in the first half of this year than previously expected. GM had previously forecast as much as $3.5 billion in losses over the first six months of the year.

The chip shortage was caused by the pandemic and a confluence of other factors. As demand for new cars tumbled last year, the relatively small group of companies that make chips shifted their priority to mobile device, video game and other consumer electronic customers. Once demand ramped back up as infection levels fell and states began to reopen, there were not enough chips to go around.

The shortage and other supply chain issues slowed production by 1.3 million vehicles in the first three months of the year, according to IHS Markit.

Legal Rights for GM Car Owners

Meanwhile, GM is still having a hard time ensuring that its vehicles are safe to drive.

The company recently recalled some 95,000 sport utility vehicles, citing a defect that could cause their seatbelts to become inoperable. GM said at the time that the problem increased the risk of injury in the event that recalled cars are involved in a crash.

There is some good news for car owners and lessors in California. The state’s lemon law requires GM and other auto manufacturers to perform a wide range of repairs on cars while they are under warranty. It also forces them to buy back or replace vehicles that the companies cannot or will not fix.

Speak with a Los Angeles Lemon Law Attorney 

If you are a car owner or lessor who has been stuck with a lemon, an experienced Los Angeles lemon law attorney at Bickel Sannipoli APC can help. 

Our firm has represented hundreds of clients in defective vehicle cases in L.A. and across the state. We help the people we represent fight back by holding manufacturers accountable.

Our offices are conveniently located in L.A., San Diego and San Francisco.  Call us at (888) 800-1983 or contact us online to speak with a Los Angeles lemon law attorney.

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"I was having a reoccurring problem with my vehicle that the dealer couldn't seem to fix and when I contacted the manufacturer they were not willing to help me at all, so I contacted the Bickel law firm. This law firm knows what they are doing and will tell you honestly whether you have a case or not. I highly recommend that you give them a try."
Posted By: Rick Mills