Chip Shortage Eases, GM and Ford Expect to Clear Backlogs by End of Year
Inflation might be on everyone’s lips right now, but let’s not forget that there’s still a chip shortage going on in the auto industry. And it will likely continue well into 2023.
There are some encouraging signs, though. For example, General Motors and Ford now expect to clear their massive backlogs of unfinished vehicles before the end of the year.
- Also: GM Plants Back to Normal Capacity With Better Flow of Chips
- Also: Nearly 45,000 Unfinished Ford Vehicles Still Waiting to be Delivered
"Chips are getting better, certainly, than they were a year ago," GM CFO Paul Jacobson told Automotive News this week.
A similar sentiment was shared by Ford CFO John Lawler. However, he warned that a lack of workforce and investments at a number of non-chip suppliers during the COVID time frame is still causing disruptions in the chain.
GM managed to ship out three-quarters of its 95,000 vehicles awaiting chips and other parts during the third quarter. This led to a 37-percent increase in net revenue from the same period in 2021.
Ford, meanwhile, once had about 70,000 incomplete vehicles sitting in lots, but that number has been cut nearly in half.
As for upcoming electric vehicles, GM CEO Mary Barra said that the automaker’s goal of making 400,000 units in North America has been pushed back from the end of 2023 to mid-2024.
At Ford, CEO Jim Farley remains confident in the Blue Oval’s ability to produce 600,000 EVs by the end of 2023 and 2 million by 2026 as previously announced.