We are officially more than halfway through 2022 and the chip shortage triggered by the global pandemic continues to have a significantly detrimental effect on the automotive industry. The Associated Press reports things are so bad that General Motors has been forced to park 95,000 unfinished vehicles.
According a regulatory filing by GM, most of the vehicles sitting in storage were built in June but are waiting on components that are scarce due to the global shortage on semiconductor chips. The manufacturer says that it expects to complete and sell the parked vehicles by the end of the year. However, it is no guarantee that GM won't face the same issue again later on in 2022.
As you probably know, modern cars rely on a multitude of computer modules and electronic sensors for critical functions. It may seem ironic that a given Sierra truck or Corvette may be 99.9% completed but can't leave the manufacturing plant because it's missing a part that is smaller than the palm of your hand, but that is our current reality.
The filing also reveals that GM sold 582,000 vehicles in the last quarter, which 15 percent less than the same period in 2021. If GM had sold the 95,000 vehicles that are currently parked, it would have more than made up for that gap.
The chip shortage continues to make the supply of new cars dwindle while sticker prices continue to go up. New car markups combined with inflation and high fuel prices can all combine in a perfect story for the automotive industry if some type of relief doesn't arrive soon.
Some industry analysts predicted that chip shortage woes were supposed to have ended by now and others have said that they don't see an end in sight, so it's difficult to know just how much longer automakers and car buyers will have to deal with it. The pandemic was the catalyst for the chip shortage and while vaccines and treatments have come a long way since 2020, COVID is still a thing and can outbreaks can still temporarily cause suppliers and manufacturing plants to shut down.
For now, it is more important than ever that anyone buying a new car does the research to get a vehicle that is the best value for their money, and suits their needs.
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