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Ford Is Not The Only Automaker Struggling With The Lack Of Chips And Parts, General Motors Had To Park 95,000 Unfinished Vehicles Due To Supply Shortages!
Due to supply issues and chip shortages, Ford is currently having to store thousands of unfinished pickups at a racetrack. About 45,000 vehicles are being kept in its inventory this quarter until they receive essential parts. The automaker is not the only one facing the same scenario, General Motors also has thousands of unfinished cars waiting for parts.
Additionally, in a press release, Ford acknowledged that supplier costs related to inflation are now costing US$ 1 billion more than originally projected.
“The parts shortage will result in a higher number than planned and the pickups will remain in Ford’s inventory waiting for the necessary parts, by the end of the third quarter”, the statement added. “The company believes that these vehicles – an expected 40,000 to 45,000 of them, largely pickups and SUVs – will be completed and sold to dealers during the fourth quarter.”
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As can be seen below, Ford began storing the pickups at the Kentucky Speedway. Satellite photos reveal the vehicles parked accumulating quickly for nearly a month due to the shortage of chips and parts.
The Kentucky Speedway is less than two hours from the Louisville assembly plant. This plant is the main location where Ford’s pickups are built.
General Motors Had To Park 95,000 Unfinished Vehicles Due To Semiconductor Shortage
The automotive industry is still experiencing the effects of the global pandemic and it seems that it may take a while before things return to “normal”. One of the major side effects of the pandemic is the semiconductor shortage, which is crucial for the production of vital electronic automotive components.
In February 2021, the semiconductor shortage was so severe that Ford had to temporarily halt production of the F-150 at two U.S. plants. In July of this year, GM reported that it had to park 95,000 unfinished vehicles while waiting for chips.
Shortly after the unveiling of the new 2024 Chevrolet Equinox EV, GM’s CEO, Mary Barra predicted in an interview that the semiconductor shortage would likely continue into 2023 and 2024. “I frankly think it’s something that will last until next year; maybe a little beyond”, said Barra. With automakers promising to deliver more electric vehicles by 2030, this ongoing semiconductor shortage may result in delays to those promises.
“The global semiconductor shortage continues to affect Ford’s North American factories – along with automakers and other industries worldwide”, a Ford spokesperson told The Drive.
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