General Motors: 95,000 vehicles unfinished due to chip shortage
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General Motors' sales drop 15% from last year due to the global shortage of computer chips and other parts.
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Along with other automakers, GM suffered a hit to US sales in the latest quarter as supply chain woes continued to crimp inventories.
Automaker General Motors (GM) said it is holding 95,000 partially-built vehicles in need of components that it expects to deliver by the end of 2022 due to the global shortage of computer chips and other parts.
According to results released on Friday, GM sold 582,401 autos in the three months ending June 30, a drop of 15% from last year. These unsold vehicles amounted to 16% of the Detroit giant's total sales from April through June.
General Motors reaffirmed its full-year net income guidance of $9.6 billion to $11.2 billion with pretax earnings of $13 billion to $15 billion. The company estimated that it would make $2.3 billion to $2.6 billion before taxes in the second quarter.
Along with other automakers, GM suffered a hit to US sales in the latest quarter as supply chain woes continued to crimp inventories.
The chip shortage has limited the supply of new vehicles in the US to around 1 million when in normal times it's about 4 million, increasing prices to record levels.
In a statement, GM mentioned that its North American production has been relatively stable since the third quarter of last year, with continuous short-term parts disruptions.
“We are actively working with our suppliers to resolve issues as they arise to meet pent-up customer demand for our vehicles,” GM affirmed.
Following the released results, GM shares fell slightly to $31.69 in Friday morning trading.
According to the Associated Press, "Most automakers have predicted minor improvement in the chip shortage during the first half of the year, with far better supplies from July through December."
