How the Semiconductor Shortage is Slowing GM’s New Car Production
The ongoing semiconductor shortage has put a damper on what major automakers were hoping to be a gigantic rebound from plummeting sales during the height of the pandemic. A recent report from the Detroit Free Press highlights just how much of a hitch the situation is creating for carmakers’ production cycles.
General Motors is parking 1,000 vehicles per day in a new lot built to hold cars waiting for parts, according to the Free Press. That has allowed the company to keep factories humming, but it also means that many cars coming off of assembly lines are not ready to be shipped to dealers.
“Since early this year, the auto industry has had to either idle assembly plants or build vehicles shy of all the parts,” Jamie L. LaReau writes for the Free Press. “The result is thin inventory on dealer lots.”
The shortage is the result of a confluence of events, largely driven by the coronavirus pandemic. Automakers reduced their orders for semiconductor chips at the start of the pandemic, expecting a steep decline in demand. As the pandemic eased and stay-at-home orders were lifted, manufacturers looked to ramp back up. But chip suppliers had shifted to serving consumer electronics makers.
That has left semiconductor chips, used in a variety of vehicles, in short supply. GM, Ford and Stellantis have all been forced to slow production as a result of the shortage, while analysts say the price tag is going up on new cars that are available for purchase.
Buying a New Car in California? Know Your Rights
Even when car manufacturers are able to complete production on cars, the vehicles they put on the road are often not safe.
Automakers around the world recall millions of vehicles per year because of serious defects that increase the risk of accidents. Those recalls often come well after cars have left factory floors and hit the road.
Fortunately, many car owners in California have the power to force car manufacturers to fix their vehicles without waiting for a recall. The state’s lemon law requires carmakers to perform various repairs on vehicles that are under warranty and to buy back (or replace) those that they cannot or will not fix.
Speak with a California Lemon Law Attorney
If you have been stuck with a detective or malfunctioning vehicle, an experienced California lemon law attorney at Bickel Sannipoli APC can help you understand and enforce your rights. We have represented hundreds of clients across the state in defective vehicle cases.
At Bickel Sannipoli, we are tireless advocates who have dedicated our careers to ensuring that car manufacturers are held responsible when they do not live up to their responsibilities. Our firm has a strong track record of successful results for our clients.