GM expects its first-half results will be significantly better than prior guidance and the company is optimistic about the full year
DETROIT – Today, General Motors outlined steps it is taking to increase deliveries to dealers and customers in the United States and Canada to meet strong consumer demand for Chevrolet, Buick, GMC and Cadillac vehicles.
- Production of the Chevrolet Silverado HD and GMC Sierra HD full-size pickups will increase by about 1,000 trucks per month beginning in mid-July as a result of production line efficiencies delivered by the team at Flint Assembly in Michigan.
- Shipments of Chevrolet Colorado and GMC Canyon mid-size pickups built at Wentzville Assembly in Missouri will increase by about 30,000 total units from mid-May through the week of July 5 as the team completes dynamic vehicle testing on units held at the plant due to semiconductor supply disruptions.
- Smaller volumes of vehicles held at other plants also will complete dynamic vehicle testing and ship to dealers during June and July.
- S. assembly plants that build GM’s most capacity-constrained products will not take any dedicated vacation downtime this summer.
As announced in May, GM will return full-size pickup production to Oshawa Assembly in Canada during the fourth quarter of 2021. The new accelerated timeline and incremental volume are expected to make an impact in 2022, as production ramps up.
As a result of GM’s ongoing efforts to prioritize semiconductor usage, its success engineering solutions that maximize the utilization of chips as well as the pull-ahead of some projected semiconductor deliveries into the second quarter, the company now expects its first-half financial results to be significantly better than the first-half guidance previously provided. GM is optimistic about the full year and expects to share additional information during its second-quarter earnings conference call on Aug. 4. GM Chair and CEO Mary Barra and Chief Financial Officer Paul Jacobson will also participate in a Virtual Fireside Chat with Credit Suisse today, beginning at 1 p.m. EDT.
“The global semiconductor shortage remains complex and very fluid, but the speed, agility and commitment of our team, including our dealers, has helped us find creative ways to satisfy customers,” said Phil Kienle, GM vice president, North America Manufacturing and Labor Relations. “Customer demand continues to be very strong, and GM’s engineering, supply chain and manufacturing teams have done a remarkable job maximizing production of high-demand and capacity-constrained vehicles.”
Production at certain manufacturing facilities in North America, Asia and South America will continue to be impacted by the global semiconductor shortage through June and July. As global semiconductor supply recovers, the company expects to implement similar actions in markets around the world to resume production and increase deliveries to dealers through the second half of the year. GM continues to work with its suppliers and policy leaders to develop long-term solutions to the semiconductor supply issues that have impacted all automakers.
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.
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