GM president expects chip supplies to stabilize but will be lower than needed

General Motors President Mark Reuss said Tuesday that the supply of semiconductor chips would soon improve, but that the available volume would still fall short of the amount needed.

“We’re going to see a stabilization to some extent before we see getting the volume we really need,” Reuss said at a Detroit Regional Chamber conference in Michigan, according to Reuters.

While General Motors executives said they expect 2022 to be a “more stable year” for chip suppliers, they added that wholesale deliveries could be down by 200,000 vehicles amid the shortage with possible effects lasting into 2023, Reuters reported.

The auto industry overall has been hit hard by the chip shortage during the coronavirus pandemic, forcing many automakers cut back on production.

Earlier this year, GM halted production at some of its plants in Tennessee, Michigan and Mexico.

Reuss on Tuesday added that, in addition to addressing chip shortages, the auto industry will aim to combat other concerns like recycling materials used in the batteries of electric cars.

“There’s a lot of material in a battery cell that can be reused,” Reuss said, according to Reuters. “We’re spending time on that.”