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The coronavirus pandemic is gravely affecting the automobile industry. General Motors (GM), an industry leader, is forced to postpone the launch of its upcoming year’s redesigned and refreshed models. Moreover, as per The Detroit News, the company has instructed suppliers to halt the manufacturing of 2021 models. Instead, the automaker is now focusing and planning on 2022 models.
A few of the prominent models affected by this decision include the Chevrolet Silverado 1500 & GMC Sierra 1500 pickup trucks. Aside from these, the refreshed models like Chevy Traverse, Cadillac XT4, and GMC Terrain crossovers will also be affected by this decision. Additionally, one can expect similar delays for the 2021 Chevy Bolt EV, and Camarao trims.
GM Authority made the first official publication of interior updates for the Chevrolet Silverado 1500 and GMC Sierra 1500 trucks. The announcement was also the first to inform us that the updates would be arriving in the upcoming 2022 model.
The travesty increases because the manufacturer will delay the launch of the 2021 full-size SUV line-up. These include the 2021 Chevy Tahoe & Suburban, GMC Yukon and Yukon XL and Cadillac Escalade. The models were initially scheduled for production in April this year on the company’s Arlington Assembly plant.
The company has requested urged employees of the plant to return to work this week to complete the production of the outgoing 2021 model. This is a necessary step to being the production of next year’s models. The company also sent a statement to The Detroit News, stating its intentions of conserving resources by managing program timings and deferring spending. Moreover, the manufacturer is not expecting to shut down the futuristic Chevy Bolt EV, Cadillac Lyriq, or Cruise Origin to be affected by the coronavirus pandemic.
Additionally, the company is sticking with its launch plans for the Ultium lithium-ion battery pack. As such, there is no clarity as to whether GM’s production line will come online or not. However, the Centers for Disease Control and Prevention has advised businesses to remain closed until April 30th, 2020. Unfortunately, both Ford and FCA might resume production by April 14th. Jim Cain, a spokesperson, added that he does not know the actual date to resume production.
He also informed The Detroit News that different plants might go into production at different points of time. He stated that the company would keep the suppliers and manufacturers informed about the resuming dates. According to an official article published by GM, many analysts believe that automakers might wait to resume production. Unfortunately, the demand for vehicles in the industry is decreasing, whereas the supply has tremendously increased.
To curb this considerable drawback, many GM dealers have started offering steep discounts and indulging incentives on particular vehicles to enhance their sales during the pandemic. The company is willing to offer zero percent interest on the loan to qualified customers for seven years. Along with this, it is providing an 84 month loan period on specific models.
Additionally, customers in the top credit tier of the current incentive program may deter payments for 120 days. Therefore, their first payment will begin after 120 days. A few stores are escalating to even higher discounts. For example, the Antelope Valley Chevrolet in Lancaster, California, is offering $11,000 off on Chevy Trax FWD LS trim. There are similar or better discounts offered by other dealers on various trims.
According to an article published by GM Authority, year-on-year vehicle sales might fall by 40 percent this month. Retail vehicle sales were down by 55 percent in comparison to last year. Stay tuned for more information on GM, the effects of the coronavirus pandemic on the automobile industry, and other news coverage.