FINANCE

The chip deficit reduced GM’s third-quarter sales


An American flag flies at a Chevrolet dealership on August 20, 2021 in Glendale, California. Despite the lack of computer chips, General Motors (GM) posted a net profit of .8 2.8 billion in the second quarter.

Mario Copper | Getty Images

DETROIT – General Motors’ U.S. vehicle sales in the third quarter fell more than 0% year-on-year as the ongoing shortage of semiconductor chips disrupted vehicle production and cut dealer inventories.

Detroit Automobile said Friday it sold about 447,000 cars from July to September, down 32.8% from a year earlier when sales fell due to the coronavirus epidemic. Industry analysts’ expectations were slightly lower than 28.9% and 31.5%.

Due to the lack of chips, GM shuts down the plant for weeks if not months, and also produces partially high-demand vehicles, such as full-size pickup trucks when chips are found.

GM warned investors last month that its North American wholesale volume would fall by about 200,000 units in the second half of 2021 compared to the first six months of the year. It maintains its fiscal guidance for the year, which includes consolidated earnings between $ 11.5 billion and $ 13.5 billion or $ 5.40 to 40 6.40.

Each brand of automaker reported double-digit sales losses in the third quarter, led by a 36.1% drop in Chevrolet.

GM plans to create some lost volume in the fourth quarter, as North American GM President Steve Carlisle said Friday that chip supply constraints are improving.

“The disruptions in semiconductor supply that have affected our third-quarter wholesale and consumer supply are improving,” he said in a statement. “As we look to the fourth quarter, an uninterrupted flow of vehicles kept in plants will continue to reach dealers, we are resuming production at key crossovers and car factories and we are looking forward to a more stable operating environment through the fall.”

GM reported that its overall sales in September were about 1.8 million units a year earlier. According to GM, sales of the brand all started from Chevrolet, with Buick down 5.6%, Buick up 27.4%, GMC up 8% and Cadillac up 10.8%.

GM was among the first major carmakers to report first-quarter sales on Friday. Overall, analysts estimate that automakers sold less than 3.4 million cars, down 13% to 14% from the same period last year.



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