It’s safe to say that it hasn’t been easy to buy a brand new car for the last few years. Prices have skyrocketed and supply has shrunk creating a difficult situation for anyone trying to get into a new vehicle. While there several reasons why auto shoppers currently facing this problem, most of it boils down to the semiconductor shortage caused by the global pandemic. The automotive industry is heavily dependent on semiconductors for the various computers and sensors that are vital to vehicle production. The shortage forced manufacturers to park nearly completed vehicles in temporary storage while it waited on parts.
The issue has eased a bit within the last 6 months or so but we may not be out of the silicon forest yet. During an interview on CBS Mornings (via David Shepardson’s Twitter), GM CEO Mary Barra gave an early preview of the 2024 Chevrolet Equinox EV. During the segment, one of the reporters asked Barra about supply chain challenges the automaker is facing. Barra pointed to the semiconductor shortage as the main culprit and predicted that it will continue to be a problem. “I frankly think it’s something that’s gonna last into next year; maybe a little beyond,” said Barra.
Barra went on to explain that the pandemic caused various parts shortages as it moved across the globe and that GM is “working through” it. To avoid the same problem with GM’s EVs Barra said that “as much as possible,” the automaker “sourced all the raw materials either in the U.S., in North America, or with allies.”
Earlier in the segment Barra was asked by Gayle King if GM’s recent push to produce more EVs was motivated by Elon Musk’s Tesla and Barra was quick to point out the GM EV1 which was released back in 1997. Barra said the EV1 was “a little ahead of its time,” although there is much more to the story than that.
She also referred to the Chevy Bolt EV and EUV which Barra says hit a sales record last month. To be fair, the Chevy Bolt first hit dealerships at the end of 2016 which is nearly five years after Tesla brought the model S to market. So, it could be forgiven if anyone were to think that GM and other automakers were motivated by Tesla’s success with EVs.
The 2024 Chevrolet Equinox EV is slated for a $30,000 starting MSRP, but if Barra is right about the semiconductor shortage possibly lasting into 2024, will the Equinox EV really manage to keep to that price tag once it hits dealers next year? We’ll see.