The Chips Begin to Fall: General Motors Production Mostly Back to Normal

[ChargerChallenger]

Time to cash out of your ride or keep her for awhile the Used Market is changing.

Overtime and increased supply help GM get back on track.
The great semiconductor chip shortage of 2021 is quietly seeing signs of relief, at least, according to GM. Like many other automakers, the group has done its best to work around the lack of chips related to the global pandemic-driven supply chain issues that plague more than just automotive production, but several consumer products.

As of December, however, things are already looking up for GM as supply has increased enough to put most of their North American production sites back on normal schedules, with some even including overtime hours to help get up to speed. Car buyers will notice the result of the production surge with dealership inventory expected to increase soon.

 

[SilverBillet]

It seemed like our local Dodge dealer has plenty of inventory of Jeep’s and trucks. I did not see any cars in the showroom but did not look very closely in the lot.

 

[Magnified]

Local here has 2 times as many ad before but still half as many as preshortage

 

[Jack_Toepfer]

I want to unload my truck, but not ready for a new one just yet.

 

[DavidKFla]

Dealer lots are pretty much empty around here.

 

[Stormtrooper1320]

Vehicles around here seem to sell as soon as they hit the lots.

 

[EricG]

Same here...still tempted to sell high right now, but then I go look at it in the garage and she stays

 

[Piening2150]

They've been working hard to keep the cash cow plants running (1500s, new GC, Wagoneer) at the expense of most everything else. And those plants are still focused more on higher-end builds and sold orders for maximum profit from the chips (and other parts). All car lots around here are still pretty bare and we're within an hour or two of all the OH & MI big 3 plants. It ain't over yet. I give it another year before it's closer to normal.

 

[Weather Man]

The local Ford lot has greatly improved inventory, GM still bare.

 

[Piening2150]

There's also still thousands and thousands of incomplete new '21 vehicles in lots around the country. Mostly Ford and GM, but plenty of Stella too. Wonder how those will figure into the ramp-up back to normal production?

 

[Stormtrooper1320]

I'm curious what will happen with the pricing of all those '21's when the 22's will be on the lots too. Will they hold back the 22's until they get all of the 21's onto the dealer lots? Will there be incentives to help move them out or will the dealers play the game like they are now and add ADM's to them?

 

[Piening2150]

I'm curious what will happen with the pricing of all those '21's when the 22's will be on the lots too. Will they hold back the 22's until they get all of the 21's onto the dealer lots? Will there be incentives to help move them out or will the dealers play the game like they are now and add ADM's to them?

As crazy as the used car market is right now (even if it has started coming back down to Earth a bit) I can't see them discounting them much at all.

They'll move to new (temporary) sales model:
You want it now? Here's a '21 on the lot, no discount.
You willing to wait? Order a '22 just the way you want, also no discount.

 

[Boris]

When inventory levels get back, we will start seeing discounts etc.

Dealers make money by selling cars. They are not going to sit on ADM with everything if every car lot has hundreds of cars to choose from.

Just going to take time to build everything back up.

As for used cars, sellers will probably get burned if they bought high.
I think that market bubble is about to pop fairly soon.

 

[69 is fine]

While they all catch up with demand. Lets pray that the gasoline costs stay under $5 / $6 dollars a gallon. Or go to a Europe or even Germany standard of $6.95 a gallon. I know those folks pay a lot of tax.

If my memory is right, new Plymouth super birds sat outside on dealers lots unsold. Then later in 1979 a new Ford F250 7.5L 179HP 460ci Ford custom explorer averaged a real world 6.4 mpg. Boy a new TRX sure looks like it sips fuel.

It seems today the better selling Dodge dealers, suck up the fluff from the other dealers. Who don't want to get wilted with the big ticket slow moving floor plans.

Pull up a nice video / CD of a crackling fire. Warm your hands on the electric glow, just in time for the dark winter. Don't forget misery loves company.

 

[DavidKFla]

While they all catch up with demand. Lets pray that the gasoline costs stay under $5 / $6 dollars a gallon. Or go to a Europe or even Germany standard of $6.95 a gallon. I know those folks pay a lot of tax.

If my memory is right, new Plymouth super birds sat outside on dealers lots unsold. Then later in 1979 a new Ford F250 7.5L 179HP 460ci Ford custom explorer averaged a real world 6.4 mpg. Boy a new TRX sure looks like it sips fuel.

It seems today the better selling Dodge dealers, suck up the fluff from the other dealers. Who don't want to get wilted with the big ticket slow moving floor plans.

Pull up a nice video / CD of a crackling fire. Warm your hands on the electric glow, just in time for the dark winter. Don't forget misery loves company.

I remember dealers removing the nose and trying to sell the Superbirds back then.

Many sat for years on the dealers back lot.

 

[Magnified]

They're ugly as hell.