Since the start of the pandemic in early 2020, there have been a number of ongoing supply chain constraints and other bottlenecks that have hampered the ability for production facilities like the Corvette Assembly Plant in Bowling Green to return back to levels of production prior to COVID.
According to Chevrolet’s VP Scott Bell, most of those constraints should be in our rear-view mirror by later this year as General Motors expects to return to nearly full production by the end of 2023.
Ahead of a meeting for Chevrolet and Buick/GMC dealers, Chevrolet’s global vice president Scott Bell and Keith McCluskey a Chevrolet dealer who is chairman of Chevrolet’s National Dealer Council spoke with Automotive News about the challenges facing the brand, and one of the main issues on the table is logistics.
“Our focus is on production and capacity and some of the shipping challenges we’ve had,” says Bell. “So we need to work hard to straighten those up and get them more of what we have, and especially with these new products coming, that’s what they’re looking for.”
One way to improve getting completed vehicles to dealers and their customers is to control more of the shipping process. McCluskey says that’s why GM is purchasing 400 heavy-duty trucks to deliver vehicles to dealers.
“GM stepped up and bought those assets. And GM people on GM-owned vehicles are delivering our product to us,” said McCluskey, CEO of McCluskey Chevrolet in Cincinnati. “It’s just part of GM being aggressive and figuring out: We’re not going to sit back and just be a victim of the transportation industry. We’re going to take charge in it.”
McCluskey says that GM executives told dealers on Saturday that the company expects to be nearly back to 100% of production capability this year. This assessment by GM comes after nearly two years of being hamstrung by supply chain issues and the microchip shortage. McCluskey says such a return “would be music to our ears.”
During the dealership meeting, GM said that nearly 500,000 vehicles had been built with missing parts and many were parked during that time awaiting those chip or other components to become available. Now that figure is only “about 1,000 vehicles” as of the end of January.
GM Authority believes that GM having 400 of its own trucks ready to move completed vehicles to dealers should help GM increase the availabile inventory back toward the 60 days supply that was considered optimal by the US automotive industry in its pre-pandemic days. The site gave an example from back in May 2022 when 11,000 Chevy Silverado HD trucks that were finished and ready to ship had to be parked instead as there was no available transport at GM’s Oshaway plant.
“Bottom line is, the bad weather, the storm is behind us,” McCluskey said. “It’s a very bright future.”
Source:
Automotive News via GM Authority
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now the dealers will only charge 10000 over sticker……….maybe
A long time car guy I fear the faddish rush to all electric vehicles. Perhaps this is a PR flag waving gesture by GM. GM cannot exist by selling only Corvettes and GM cannot exist relying on China. Hang on to your wallets.
Next we’ll hear about “Supply chain issues” to build the rigs to deliver the cars. GM has problems and it’s not going to end overnight.
THIS IS A GOOD IDEA
YOU GUYS HATE EVERYTHING GM DOES
GM is getting into the car hauling business? I think someone mis-spoke. I’m in the car hauling business and that is not happening.
I Was an independent trucker for 40 years. Several times over the years a company I was hauling for bought their own big rig. Within a year or so they called me back and got rid of the truck and trailer as they had no concept of all that’s involved (like costs) in the trucking business. When GM finds out how long it will take to build 400 new rigs (guessing a year), they just might come up with another plan.
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