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GM might lose 90-year U.S. sales crown over chip shortage

Automotive News editor Nick Bunkley tweeted on October 1 that according to AutoNews data, General Motors "has been the largest seller of vehicles in the U.S. every year since passing Ford in 1931." With automakers having turned in light car and truck sales data for the first three quarters of 2021, GM's 90-year-run might not reach 91. According to AN figures, Toyota was 80,401 vehicles ahead when the October workday started. Worse, GM is so far behind its historic pace that it might only sell enough light vehicles in the U.S. to match its numbers from 1958.  Meanwhile, the New York Times put a few more salient numbers to the pain GM and Toyota are enduring alongside the the rest of the industry. GM sold 33% fewer cars in Q3 2021 than it did in Q3 2019 during the dark days of the pandemic, 446,997 units this year as opposed to 665,192 last year. GM's Q3 2020 was only down 13% on Q3 2019. Over at Toyota, the bottom line showed a 1% gain in Q3 2021 compared to 2020, with 566,005 units moved off dealer lots. The finer numbers show two steps forward and one step back, though; Toyota's September sales were down 22% compared to last year.  GM remains optimistic about what's ahead, GM's president of North American operations telling the NYT, "We look forward to a more stable operating environment through the fall." We'd like to see that happen, but we don't know how it happens. The chip shortage said to have been the inciting incident for the current woes isn't over, and not only can no one agree when it will be over, the automakers, chip producers, and U.S. government still can't get on the same page about who needs what and when. Looking away from that for a second shows articles about "No End In Sight" for supply chain disruptions in early September, before China had to start working through power supply constraints, global supply chain workers started warning of a "system collapse," and roughly 500,000 containers sat waiting to be unloaded at Southern California ports — a record number seemingly broken every week. And back to chips, we're told just a few days ago the chip shortage is "worse than we thought."   For now, the NYT wrote that GM dealer inventory is down 40% from June to roughly 129,000 vehicles, and down 84% from the days when dealers would cumulatively keep about 800,000 light vehicles in stock. However, GM just announced it would have almost all of its U.S. facilities back online next week, although some would run at partial capacity.

2020 GMC Sierra 1500 Interior Driveway Test | Still lagging behind

GM has caught nothing but grief for the interiors of its full-size pickups since they were redesigned. Some of it is about perspective. Ram blew everybody away with the new 1500’s interior, but it's not like the Ford F-150 is embarrassed by it. Chevy and GMC are. Even a top-shelf Sierra Denali doesnÂ’t live up to the luxurious environment its price tag would promise.  The trim of Sierra we're testing is an AT4, though. ThatÂ’s the light off-roading version of the Sierra thatÂ’s mechanically the same as the Silverado Trail Boss we recently reviewed. Looking at the interior from a pure functionality standpoint, the Sierra is perfectly fine at performing its truck duties. The seats are wide, flat and comfortable. It has huge armrests on both sides so you can stretch out as much as your truck stretches the boundaries of the road (seriously, this thing is huge). All the buttons in the center stack are well-labeled, easily found and big enough to stab away at without hitting the wrong one. It even has a volume and tuning knob. Yeehaw!  But look at the design. And the styling, or lack thereof. ItÂ’s plain and lacking in imagination. The whole center stack is just one big slab of black plastic, and the only splashes of color or style to distinguish it visually are bits of silver surrounding knobs and bits of gray surrounding air vents. That's certainly not enough to make it attractive. There are token pieces of "wood" inserted on Denali models, but they're almost hidden away along the center console and doors.  The screen looks as if itÂ’s scrunched into the top of the stack due to the vents curving in on both sides, making it look smaller than its perfectly acceptable 8-inch size. That just makes it more obvious that GM doesn't offer something to challenge the gigantic 12-inch optional screen on the Ram 1500. Not good, because size does matter when it comes to trucks, even if it's measured in a touchscreen's inches rather than engine displacement. LetÂ’s not discount how good all of the tech is in the Sierra 1500, though. GMÂ’s infotainment software that runs on the screen is glitch-free and runs like lightning through screens and menus. The performance is impressive, and of course both Apple CarPlay and Android Auto are on board.

GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.