General Motors is struggling due to the shortage, but its pickup trucks are still selling very well
GMC has prioritised Sierra and Yukon production since the beginning of the shortage
Demand is so strong that even with an additional factory, dealers won’t be able to keep trucks in stock
Despite the chip shortage that could cost General Motors its title of best-selling automaker in the United States, GMC is expecting to sell a record number of its Sierra and Sierra HD pickup trucks in 2021.
Since the pandemic, demand for trucks and large SUVs has seen an increase while the production capacity has been lowered due to a lack of electronic components. Many automakers have also chosen to prioritise these vehicles since they generate more profits than smaller and cheaper products.
GMC used this strategy to maximise the number of Sierra and Yukon models they can produce on the small quantities of parts they have.
Even with those restrictions, GMC’s vice president is confident the brand could deliver more Sierra pickups than it ever has by the end of the year.
The third quarter of 2021 was more difficult for the company, with sales of the Sierra down 22% compared to Q3 2020, but calendar year 2021 up to September still manages to bring 10% more sales than the comparable period last year.
With such high demand, General Motors decided to reopen its Oshawa Ontario Assembly plant to increase its production capacity for GMC and Chevrolet full size pickups which are currently built in three facilities in the United States and Mexico and even then, dealerships still won’t be able to keep those vehicles in stock.
Most dealers don’t have a single pickup in their inventory because they are very often ordered or bought sight unseen before they even reach the dealership.
This situation could continue for a while before production is able to match demand again.
