Ford Motor Co and General Motors will be individually suspending production in Michigan next week due to supply chain constraints. However, it’s difficult not to notice that the chosen facilities are responsible for lower-volume models they could probably afford to idle.

GM is stalling Lansing Grand River Assembly and Stamping, citing a parts shortage it said had nothing to do with the ongoing deficit of semiconductor chips. The company later stated that the Russo-Ukrainian war had not played a factor, abandoning the two most popular excuses for why something isn’t being done in 2022. Meanwhile, Ford has said the chip shortage has everything to do with its temporary closure of Flat Rock Assembly. 

“The global semiconductor shortage continues to affect Ford’s North American plants – along with automakers and other industries around the world,” the Blue Oval explained. “Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect. All of our North American plants will run the week of April 4, except Flat Rock Assembly Plant.”

Ford’s latest closures will only affect the Mustang, which has become a lot less popular since 2015. North American deliveries currently represent about half of what they would have six years ago, suggesting that the company may have opted to let the Mustang take the hit in lieu of having to suspend truck production yet again. The manufacturer even issued a warning last month that the semiconductor shortage would continue to be an issue for the brand, followed by an announcement that it could lead to a decline in quarterly output.

General Motors suspending activities in Lansing will also have its production hit landing on the chin of some of its least-popular models – including the Cadillac CT4, CT5, and Chevrolet Camaro.

The CT5 sedan has failed to be a hit with Americans thus far, garnering only 14,711 U.S. deliveries in 2020 (it’s first full year on sale) and a paltry 9,446 in 2021. But the Cadillac CT4 is the model that really made me lose faith in the brand (along with the XT4) and has attained even fewer orders than its larger counterpart.

Meanwhile, the Camaro has suffered a fate similar to the Mustang with sales volume declining consistently since 2014. Despite both being solid performance automobiles, tastes have shifted and there’s less room for fun-focused coupes in an era where the wealth gap has broadened and there are fewer members of the middle class willing to purchase what are frequently secondary rides. This may also explain why the more-practical Dodge Challenger has managed to retain its volume better than Ford or Chevy’s pony cars.

Speculative to be sure. But both Ford and GM have recently hinted at plans to rejigger their production efforts to prioritize models with superior margins and reliable sales – basically, vehicles that cost less to produce, move reliably, and can be sold for juicier profits. This is especially important now that pandemic-induced sales conditions have mostly ended and there’s less willingness from the public to be gouged by dealerships devoid of product. As a result, companies have continued deprioritizing sedan and coupe sales in favor of more financially robust crossovers, pickups, and SUVs.

Analysts are expecting elevated vehicle pricing to persist regardless, citing rising material costs, ongoing supply constraints, and various industries’ say-so. However, they’ve also begun discussing manufacturers evolving their priorities in a bid to run lean and dealerships that will want to continue enjoying enhanced profitability per transaction for as long as possible.

Unless these are components unique to the above models that have gone absent, my guess is that GM and Ford are tired of having to press pause on their highly lucrative pickup trucks and needed to choose which products would take the hit. Assembly of the Chevrolet Silverado 1500 and GMC Sierra 1500 went down in Indiana last week due to absent semiconductors. Ford stalled production of the F-Series in Kansas City last February for the same reason. But it was hardly the first time either manufacturer idled truck assembly and probably won’t be the last until supply chains return to normal or manufacturers start building more of their own components.

Both plant closures are scheduled to commence on April 4th. GM said it expects Lansing Grand River to remain down until the 11th, adding that employees will still get paid at least 75 percent of their compensation from unemployment. Ford was less clear on when it expects Flat Rock to be back in action, though it likewise stated that it’ll do everything in its power to make up for product shortfalls – assuming there’s a need.

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This would be a perfect day for a Freedumb Convoy update.

I hear they found a first class strip club. Good thing, because…

youtube.com/watch?v=kMsrE-9CLFg

A heavy metal gay song “Ram Ranch” was used to troll the Freedumb Convoy in Canada. Counterprotesters would play it over their communications links and on hacked sites.

Lou, it’s unfortunate you celebrate the behavior that is the lowest common denominator. How can a civilized society tolerate forced chemical injections and then use filth to counteract the argument? Perplexing. What’s next, rounding up the people who wear eyeglasses.

“Lou, it’s unfortunate you celebrate the behavior that is the lowest common denominator. How can a civilized society tolerate forced chemical injections and then use filth to counteract the argument? Perplexing. What’s next, rounding up the people who wear eyeglasses.”

This was the trump vaccine. A wonderful vaccine he invented and took himself. are you saying mr trump lied?

I just hope ii makes cars and driving more expensive so we have fewer poors and their crapboxes cluttering up our roads

Hey as Canada got that squad of Laundry specialists ready to contribute to NATO yet?

Ahhh. I remember MY first beer.

Naa. If people are going to hijack a thread to say “look at these dumb conservatives…gee I’m so smart” Im going to take the opportunity to point out that this one is quite wealthy and if they are going to be abject aholes by enjoying the dumb decisions that are making people sick I am going to return the favor by enjoying the benefits of not being poor and enjoying whatever dumb decision(s) they have made that has made them poor. And frankly, as I enjoy driving and we are nowhere close my not being able to do so I gleefully look forward to others losing that ability and making the roads a better place for the rest of us.

I mean it’s not like I am getting satisfaction from people dying, right? You can get out of poverty. Not so much with being dead

“Hey as Canada got that squad of Laundry specialists ready to contribute to NATO yet?”

I heard they had to deploy a younger squad. The old crew was all washed up.

I saw some of the live streams where they’d be talking about the vaccine and how they’d never put a dangerous chemical into their bodies and then take a drag on a cigarette. Both the Canadian and the wandering US convoy.

Mind wonders, is this the new norm?

Will we ever get back to pre-pandemic times?

Perhaps this will be a path back to in-source operations here at home? Why outsource everything we do and need to overseas? So what if our standard of living is reduced some. May be we can’t have luxury vinyl planks for cheap. Or granite stone in kitchens. or fancy hardwood floors. or myriad of LED lighting options. Or many decor pieces from hobby lobby.

My first home, I had plastic vinyl for flooring in kitchen and bathrooms. I had thin carpet in all living area, no hardwoods. I had simple laminate for countertops. The house my nephew wants is way over the top.

It is time to get back to simplicity but reliability.

Same is true for cars. Forget stop/start technology. Forget lane detection and blind side monitoring and radar cruise. For the love of God forget autopilot. Get rid of complex infotainment systems with all functions embedded in them.

Reduce the cost of entry. Make them simpler. Forget high mileage but allow simplicity of design of naturally aspirated.

Alas, we want it all, and we want it cheap.

I’d gladly give up a ton of electronic gadgets in my vehicle for something less costly and more reliable.

No way Lou. I’ll not have you omitting those complex emission control systems. You don’t get to pollute my air because you can’t afford a new car If you can’t afford a car I suggest public transit. I hear Canada is quite enlightened in that regard

@Art Vandelay – I said gadgets. I can do without auto stop-start, automatic headlights or wipers. I don’t need heated seats or steering wheels.

pmirp1- HOW OLD ARE YOU?

I loved our 1950’s bathroom tile…..pink with small black flamingo silhouettes here and there. Vinyl flooring (light grey), blue curtains. Perfect. Now in this modern house, it’s just so 2020 dull.

My house didn’t have any hardwood floors — until I bought a floor nailer. (Oh wait, you were talking about cars. Carry on.)

Have had similar thoughts as these types of articles continue to pile up.

Most of the crap, err safety tech, is not needed. ABS, airbags, crumple zones… sure, they’re all passive. Active safety tech might help the youngest of drivers who can’t put the phone down – or the older people with the same problem – but they’re not needed.

If you can’t change the radio station/track, volume, hvac settings or cruise without using a screen, a designer screwed up.

jkross22- I understand that all people who pontificate on this forum are skilled drivers beyond measure and feel that safety tech is not needed for them.

I feel like I’m talking with Cathy Newman.

Me: “Active safety tech isn’t needed.” You: “So you’re saying you’re ok with people dying in a fiery car crash.”

@pmirp1–On my 2022 hybrid XLT Maverick I did not order the Ford 360,lane assistance, or adaptive cruise just to keep it simple and get my truck produced sooner. I did get a spray in bed liner, full size spare, and front and back floor trays. I ordered the XLT instead of the XL to get cruise control, power mirrors, intermittent wipers, aluminum wheels, and the key pad on the outside. Also preferred the gray and navy seats to the all black that comes on the XL. You can get a simpler less optioned model if you order one and with the Maverick I had to. My first house had vinyl floors, Formica counters, and shag carpet so I hear you. I was just glad to be able to afford a nice house. I would have liked to had a compact truck without the crew cab and a larger bed but they don’t make them and for the price I will get a decently equipped Maverick out the door for less than 26k which includes tax, title, and licensing which in today’s market is a bargain. I am happy with cloth seats and I don’t need heated seats since my wife’s CRV has all those features plus GPS.

Cadillac CT products are SEDANS not crossovers. How soon you forget the Blackwings

What is the lead times on semiconductor chips? 2020 is getting farther and farther in the rear view. Should we not expect chip production for autos to have caught up by now? Seems contrived and convenient.

The industry was reportedly looking at 25 weeks in December, which isn’t good. But I was also told that the situation was being dealt with at the start of 2021 by auto spokespeople. Contacts who actually work the lines said they felt like things were getting better by October of that same year. Granted, not every company had it equally bad. But it just feels like the whole industry (and plenty of others) have been in excuse mode for far too long.

While I firmly believe a lot of these shortages are rooted in very real supply chain breakdowns that occurred during the pandemic, too much of what’s been going on seems predatory. Every company in the world just spent the last two years learning they can remain profitable by running extra lean and withholding product and I’ve been wondering why would they change course now if they didn’t have to.

@Matt-True and Ford’s new business plan is to sell more customer ordered vehicles. I ordered my hybrid XLT Maverick on July 26 and it was just manufacturered on March 11 and is in transit with an estimated dealer delivery date of April 8 to 15. By the time I pick it up will will be almost 9 months from the time I ordered it. Production was rescheduled twice.

kcflyer- Everything I have read thus far says this “chip thing” will still be around in 2023-some are predicting 2024 until inventory levels return to normal.

Dealership lots at least around here (Salt Lake City) are devoid of new cars. I doubt that it is “contrived and convenient” for dealerships to have practically ZERO INVENTORY on their lots. Many buyers (including myself) would like to buy a new vehicle but refuse to pay a mark up. I just called a Toyota dealer on a new Highlander and they will be happy to order me one and sell it to me at $2,000.00 MSRP. NO THANK YOU.

I’m seeing almost empty lots too but I get the sense that some dealerships are liking the fact that they do not need to sweat 90 day floor plans. If you want something you have to plunk down a deposit and order it. It can easily backfire on dealerships since that opens up the door for manufacturers to offer direct sales.

@Lou–Yes but Hyundai, Kia, and Ram could break this plan of dealers having lean inventories once they get more chips which would give them an opportunity to gain more market share. As for direct sales if dealers are going to charge above MSRP then I welcome direct sales from manufacturers.

All I keep hearing is low inventory is producing record profits. So which OEM blinks first and goes for volume / market share?

KC> Someone will. Business school basics – game theory.

Seriously, these are manufacturing companies. They have HUGE amounts of capital tied up in land, buildings and equipment, all used in production. This isn’t just funny money – it’s real stuff they bought and paid for (and sometimes even pay interest on).

Not utilizing this stuff costs money.

I don’t buy the “they’re keeping sales artificially low” argument.

If company A is locked into a pricing agreement to sell steering wheels at $50/wheel, but the material cost and labor to make the wheel went from $10 to $30, and for each wheel you produce, you lose money, why produce at all?

Can’t say for certain this is what’s happening with cars, but it’s definitely what is happening for frozen foods.

Wait a minute FreedMike…They are in the business of making money…not making sure everyone can afford a new car.

I hear Honda has CPO on some decade old stuff now if you are having trouble affording a new car.

Besides, fewer cars is a win for Mother Earth, right? Oh you didn’t mean you wouldn’t be able to drive. Well, welcome to the future. Some people won’t be able to afford personal transportation anymore. But like Billy Zane said in Titanic…not the better half lol.

You voted for it. Ask and ye shall receive!

But hey, how about a “freedumb convoy” update so you can feel superior lol. I’ll just be driving my car instead, thanks

@kcflyer – I agree. If one car company gains a “chip” advantage and a chance to gain market share they will flood the market with vehicles and discounts.

I’m really starting to wonder if it’s all just a ruse to keep prices up.

That’s what I’m saying.

You on an April 1 kick?

“I’m really starting to wonder if it’s all just a ruse to keep prices up.”

Sure because this pandemic induced supply chain issue is only affecting automobile manufacturers!

You guys really need to get off the internet & spend some time in the real world. I work in manufacturing and the supply chain issues(materials & labor) are real and they are everywhere.

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