Monday, October 3, 2022
News The Shortage of New Vehicles is Not Only Due to Supply Issues:...

The Shortage of New Vehicles is Not Only Due to Supply Issues: Transport is Also a Problem

The automotive industry, General Motors and Ford in particular, are facing another type of challenge.

  • Rail transport for new vehicles is struggling to move enough vehicles

  • There are currently almost 11,000 Chevrolet Silverado HD waiting outside GM’s Oshawa plant

  • The situation is even worse for Ford, who has around 53,000 F-Series, Broncos and Explorers lying around

For over two years, automakers have had to deal with shortages of components and various sanitary restrictions and this has caused production to slow down. During that same time, many brands have introduced long-awaited new models which are proving very popular.

This leads to the current situation where there is a shortage of new vehicles on the market, but it isn’t its only cause. Indeed, even when automakers are able to speed up their production, there are outside factors that limit the number of vehicles that can reach their buyers.

The current problem seems to be the rail transport industry, which affects the three American automakers the most since they mostly use trains to get their vehicles from the factory to the part of the continent where they have been sold.

Reports indicate that there are currently almost 11,000 new trucks sitting outside the newly reopened General Motors factory in Oshawa, Ontario. Most of these trucks are the Heavy-Duty versions of the Chevrolet Silverado, which is one of the largest vehicles available on the market.

All of these vehicles are complete and most of them have already been sold, but they are awaiting a train that will take them to their buyers.

This is not only a General Motors issue either, since the situation is even worse for Ford, who reports having around 53,000 vehicles sitting outside various factories in Canada and the United States.

Again, these vehicles are all very popular models such as the Bronco, the Explorer and the F-Series pickup, so most of them are already sold.

The common trait between all of these vehicles is that they are very large and this is probably not a coincidence. Indeed, larger vehicles necessarily require more space in the shipping wagons, so less of them can be carried at once, thus requiring more trips or more wagons to carry a large number of vehicles.

This then puts a strain on the rail shipping industry, which is having trouble to cope with the demand.

2023 Ford F-150 Rattler | Photo: Ford

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