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GM Quarterly Sales Fall Amid Shortage in Computer Chips and Other Parts


General Motors said on Friday that new car sales fell 15 percent in the second quarter from a year earlier as the global shortage of computer chips continued to limit the production of cars.

The company sold 582,401 cars and light trucks from April to June, compared to 688,236 in the same period last year.

GM says its factories hold 95,000 vehicles made without specific power components that are out of supply due to a lack of chip. It plans to install the parts when they become available and ship the vehicles to dealers.

“We will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible,” said Steve Carlisle, executive vice president and president, North America.

In filing with the Securities and Exchange Commission, GM said most of the 95,000 car missing parts were made in June. It said the backlog would affect second -quarter net income, which is projected at $ 1.6 billion to $ 1.9 billion. A consensus of analysts ’forecasts compiled by Bloomberg points to revenue of $ 2.4 billion.

Because the company expects to ship most or all of its 95,000 part-finished vehicles by the end of the year, it also confirms the year-over-year vision for net revenue of $ 9.6 billion to $ 11.2 billion.

Shares of the company rose 2 percent in early trading.

GM also reported that sales of electric vehicles in the quarter rose to more than 7,300, from less than 500 in the first quarter.

Its Chevrolet division sold 6,945 Bolt EVs, up from 358 in the first quarter. GM recently resumed production of the Bolt after a few months of hiatus due to a defect in the car’s battery pack. Due to the defect, GM recalled all 140,000 Bolts it had made to replace their battery packs.

The company’s GMC division sold 272 Hummer luxury electric trucks, up from 99 in the first quarter.

GM also began shipping electric delivery vans to FedEx and other customers and began making the Cadillac Lyriq, an electric sport-utility vehicle. It has enough orders for all of the Lyriq it plans to make for the 2023 model year, and on June 22 it started taking orders for the 2024 models.

A battery plant built by GM with LG Energy Solution in Lordstown, Ohio, should begin production in August, the company said.



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