GM Built 95,000 Vehicles It Can’t Sell

Back in September 2021, GM was forced to shut down entire North American manufacturing plants due to the semiconductor chip shortage, given that the company would simply be generating more deadweight for their limited inventory space by continuing to manufacture more of these unfinished cars. Some manufacturing plants, such as its Arlington Assembly and Flint Assembly, have continued to produce vehicles despite the semiconductor shortage. Certain other manufacturers, such as Ford and FCA, have been idling since January 2021.

In its earnings report, sales across all GM-owned brands are not expected to slow down any time soon, despite the roughly 95,000 vehicles that can’t be sold. GM noted in an SEC filing report from July 1 that these vehicles will be finished in the latter half of 2022, as semiconductors begin to flood back into the market. This could happen sooner, as reports since late April have claimed the shortage is now down to a transport logistics issue rather than a silicon supply issue.

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