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95K GM vehicle is stored unfinished due to lack of chips | Associated Press

Detroit (AP) — A global shortage of computer chips and other components forced General Motors to build 95,000 vehicles in the second quarter without specific components.

Detroit automakers said in a Friday filing with regulators that most of the imperfect vehicles are expected to be manufactured in June and completed by the end of the year for sale to dealers.

Unsold vehicles reached 16% of GM’s total sales from April to June. The company said Friday that it sold more than 582,000 vehicles during the quarter, down more than 15% from a year ago.

The company reaffirmed its full-year net income outlook of $ 9.6 billion to $ 11.2 billion and pre-tax income of $ 13 billion to $ 15 billion. For the first time, the company forecasts $ 2.3 billion to $ 2.6 billion before tax in the second quarter. According to FactSet, this did not reach the analyst’s estimate of $ 3.97 billion.

Chip shortages have plagued automakers around the world since 2020, forcing many automakers to temporarily close their factories and cut production. Due to the shortage, the supply of new cars in US dealer lots is limited to about 1 million units, but in a normal year it is about 4 million units at any time.

It pushed prices to record levels and restricted car choices, but it also led to strong profits for most automakers.

In a prepared statement, GM said production in North America has been relatively stable since the third quarter of last year, but short-term component turmoil continues. “We are actively working with our suppliers to resolve issues when they arise to meet customer demand for our vehicles,” the statement said.

Most automakers predict that chip shortages will improve slightly earlier this year and supply will improve significantly from July to December.

GM shares fell to just $ 31.69 in trading on Friday morning after the filing was announced.

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95K GM vehicle is stored unfinished due to lack of chips | Associated Press

Source link 95K GM vehicle is stored unfinished due to lack of chips | Associated Press

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