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GM now finishing and shipping pickups it had parked for lack of chips

DETROIT — General Motors is more than halfway through shipping newly-assembled pickups that it had parked due to a shortage of semiconductor chips, a top executive at the No. 1 U.S. automaker said on Friday. "We've made great progress," Steve Carlisle, GM's North American chief executive said at the Reuters Events Automotive Summit. "We're a bit better than halfway through that at the moment and our goal would be to clear out our '21 model years by the end of the year. We'll have a bit of a tail of '22 model years into the new year but not for too long." The global chip shortage has forced automakers like GM to idle production or in some cases mostly build vehicles and then park them until the necessary chips can be installed, allowing those vehicles to be then shipped to dealers. Last month, GM Chief Financial Officer Paul Jacobson cautioned that GM's third-quarter wholesale deliveries could be down by 200,000 vehicles because of chip shortages. He did not break out what share of that was trucks. To expedite transportation of newly-built vehicles to dealers, Carlisle said GM bought a number of car haulers to deliver them from factories or distribution centers. The Detroit automaker has also allowed dealers to pick the vehicles up themselves in some locations. Carlisle said new vehicle inventories have shrunk to below 20 days in the United States due to the supply chain disruptions, but the company wants to get that back up to 30 to 45 days with some getting to 60 days depending on the product line. GM sees sales of gasoline-powered vehicles being steady over the decade and real growth opportunity in electric vehicles and software, with one not undermining the other, he said.  

GM under fire from safety advocates over braking problem caused by recall fix

Safety experts are lambasting General Motors over what they say is the automaker’s slow notification of owners of certain 2019 sedans and trucks that a recall fix could cause power braking to fail and increase the risk of a crash, the Detroit Free Press reports.  GMÂ’s original recall in December targeted about 550,000 Cadillac CT6 sedans and Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, all from the 2019 model year, over potentially defective electronic stability control and antilock brakes. In that case, GM said the errors would not show up as a diagnostic warning on the instrument cluster. But after GM had done recall work on 162,000 vehicles, about 1,700 owner have complained that their power brakes didnÂ’t work after they had the recall done and then used the OnStar app to start their vehicle. GM then issued a supplemental fix for customers whoÂ’d already had their vehicles serviced. In this case, a diagnostic warning should illuminate saying either “Service Brake Assist” or “Service ECS,” which GM says is a signal that a customer should not drive the vehicle and instead call their dealer, which will tow the vehicle and have it repaired. Safety advocates say the automaker hasnÂ’t gone far enough to protect customers. “The fact that you could potentially start a vehicle and not have brakes is a pretty risky proposition,” Sean Kane, president of the Safety Research and Strategies, which works on auto issues for plaintiffs and governmental organizations, told the Freep. “The fact that they wouldnÂ’t notify owners (sooner) is pretty stunning.” GM told the Freep it was required to notify the National Highway Traffic Safety Administration and file paperwork before it notified customers about the original recall, which was made Dec. 12. It then had to investigate and resolve the problem created by its original recall fix before alerting customers. GMÂ’s call center and dealers are contacting the remaining 900 customers who havenÂ’t yet had the update made to the original recall repair. GM also hired a vendor to send recall letters to the 550,000 customers affected by the original recall notifying them about the update. There are no known injuries or deaths related to the problem. Read the Freep story here.

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.