Mon, 08 Aug 2022

DETROIT, Michigan, global shortage of computer chips, vehicles, Detroit automaker, General Motors, GM's total salesDETROIT, Michigan: The global shortage of computer chips and other parts resulted in 95,000 vehicles being built by Detroit automaker General Motors (GM) without needed components during the second quarter of 2022.

In a regulatory filing last week, GM said that most of the incomplete vehicles, accounting for 16 percent of GM's total sales from April through June, were built in June, with most expected to be finished and sold to dealers before the year's end.

GM also said that it sold more than 582,000 vehicles during the quarter, some 15 percent fewer than one year ago, while reaffirming its full-year net income of $9.6 billion to $11.2 billion with pretax earnings of $13 to $15 billion.

Since 2020, the global chip shortage has affected automakers and forced many to temporarily close factories and reduce production, limiting the supply of new vehicles available to U.S. dealers to some 1 million, compared with 4 million in normal times.

While automakers have achieved minimal profits, shortages pushed prices to record levels and limited vehicle selections.

In a statement, GM stressed that its North American production has been relatively stable since the third quarter of 2021, but short-term parts disruptions are continuing.

"We are actively working with our suppliers to resolve issues as they arise to meet pent-up customer demand for our vehicles," it said.

Most automakers are predicting a recovery in chip supplies during the first half of the year, especially from July to December.

After the filing was made public, GM shares fell slightly to $31.69 in late week trading.

More Central Africa News

Access More

Sign up for Central Africa News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!