DETROIT — A global shortage of computer chips and other parts forced General Motors to produce 95,000 vehicles without certain parts in the second quarter.
The Detroit automaker said in a regulatory filing Friday that most of the incomplete vehicles were built in June and that most of them are expected to be completed and sold to dealers by the end of the year.
Unsold vehicles accounted for 16% of GM’s total sales from April to June. The company said Friday that it sold more than 582,000 vehicles in the quarter, down more than 15 percent from a year earlier.
The company reiterated its full-year net income guidance of $9.6 billion to $11.2 billion and pretax earnings of $13 billion to $15 billion. For the first time, the company forecast second-quarter pretax income of $2.3 billion to $2.6 billion. That was lower than analysts’ estimates of $3.97 billion, according to FactSet.
Chip shortages have plagued automakers around the world since 2020, forcing many to temporarily close factories and cut production. The shortage has limited the supply of new vehicles to U.S. dealerships to around 1 million, compared with around 4 million at any one time in a normal year.
This has pushed prices to record levels and limited vehicle choice, but has also been lucrative for most automakers.
GM said in a prepared statement that its North American production has been relatively stable since the third quarter of last year, but short-term parts disruptions continued. “We are actively working with our suppliers to resolve issues that arise to meet pent-up customer demand for our vehicles,” the statement said.
Most automakers forecast a slight improvement in chip shortages in the first half of the year, with much better supplies from July to December.
Shares of GM were down slightly to $31.69 in early trading Friday after the filing became public.
Copyright © 2022 The Washington Times LLC.