GM Extends Impact of Chip Shortage to 200,000 Vehicles in Second Half

GM Extends Impact of Chip Shortage to 200,000 Vehicles in Second Half

General Motors Company’s Chevrolet Traverse sport utility vehicles (SUVs) sit on the assembly line at the company’s Lansing Delta Township assembly plant on Friday, February 21, 2020 in Lansing, Michigan.

Jeff Kowalski | Bloomberg | Getty Images

Global chip shortages will have a bigger than expected impact on General Motors vehicle sales and production in the second half of the year.

GM Chief Financial Officer Paul Jacobson said in a conference call with RBC Capital Markets on Friday that the cut would reduce GM’s wholesale distribution in North America by about 200,000 vehicles in the second half of the year, compared to 1.1 million in the first half. When GM announced its second quarter profits in August, the shortfall was more than double the 100,000 units.

Despite the increase, Jacobson said the company is maintaining its most recent forecast for 2021.

“We’re still going to deliver a year that is more than what I originally thought was going to happen in January,” Jacobson said.

Last month, the automaker raised its adjusted annual forecast to $ 11.5 billion to $ 13.5 billion, or $ 5.40 to $ 6.40 per share, to $ 10 to $ 11 billion, or $ 4.50 to $ 5.25 per share.

The increase follows GM’s announcement or extension of downtime for varying periods of time for nearly every one of its plants in North America last week.

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