Will GM be affected by chip shortage?

21, 2020. General Motors’ vehicle sales and production will be hit harder by the global chip shortage during the second half of the year than it previously expected, its finance chief said Friday. That reduction is double the 100,000 units that was expected when GM reported second-quarter earnings in August.

What is GM doing about the chip shortage?

N) aims to tackle the global semiconductor shortage with new designs built in North America, President Mark Reuss said on Thursday. Reuss told an investor conference GM is working with seven chip suppliers on three new families of microcontrollers that will reduce the number of unique chips by 95\% on future vehicles.

How much longer will the microchip shortage last?

But now he said they will likely last until 2023. Wells Fargo Investment Institute recently revised down its U.S. GDP forecast to 6.3\% from 7\% as the chip shortage limited the supply of consumer goods. “This is playing out considerably longer than we initially thought,” Mr. Wren said.

Is GM making trucks now?

General Motors has done everything it can to protect production of its in-demand and highly profitable full-size pickups from the ongoing global shortage of semiconductor chips used in many car parts. But now GM will be pausing most of its pickup production in North America.

Why is there a car chip shortage 2021?

The COVID-19 pandemic messed up supply and demand forecasts. So they reduced sales forecasts and cancelled part orders for components like microchips.

How is Ford dealing with chip shortage?

Ford strikes deal with US contract chip maker GlobalFoundries to patch America’s auto-industry semiconductor shortage. The Mustang maker said it signed an agreement with US chip-making contractor GlobalFoundries to help create more semiconductors for Ford’s lineup of vehicles and the broader US auto industry.

Will new cars be cheaper after chip shortage?

As long as there’s strong demand and inventory constraints caused by the chip shortage, prices for vehicles are not expected to drop anytime soon, according to Kayla Reynolds, an industry intelligence analyst at Cox Automotive.