DETROIT (AP) — Global shortages of computer chips and other parts forced General Motors to build 95,000 vehicles without certain components during the second quarter.
The Detroit automaker said in a regulatory filing on Friday that most of the incomplete vehicles were built in June and that it expects most of them to be finished and sold to dealers before the end of June. ‘year.
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Unsold vehicles accounted for 16% of GM’s total sales from April to June. The company said Friday it sold more than 582,000 vehicles in the quarter, down more than 15% from a year ago.
The company reaffirmed its full-year net profit guidance of $9.6 billion to $11.2 billion with pretax profit of $13 billion to $15 billion. For the first time, the company predicted it would earn between $2.3 billion and $2.6 billion before taxes in the second quarter. That’s below analyst estimates of $3.97 billion, according to FactSet.
Chip shortages have plagued automakers around the world since 2020, forcing many automakers to temporarily close factories and cut production. The shortage has limited the supply of new vehicles on dealer lots in the United States to around 1 million, compared to a normal year of around 4 million at any one time.
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This pushed prices to record highs and limited vehicle selection, but it also led to strong profits for most automakers.
In a prepared statement, GM said its North American production has been relatively stable since the third quarter of last year, but short-term parts disruptions continue. “We are actively working with our suppliers to resolve issues as they arise to meet pent-up customer demand for our vehicles,” the statement said.
Most automakers predicted a minor improvement in chip shortages in the first half of the year, with much better supplies from July through December.
GM shares fell slightly to $31.69 in Friday morning trading after the filing was made public.
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