Chip Shortage Leaves 95K GM Vehicles Unfinished in Storage – CBS Detroit

DETROIT (AP) — The global shortage of computer chips and other parts forced General Motors to build 95,000 vehicles without certain components in the second quarter.

The Detroit automaker said in a registration request Friday that most of the incomplete vehicles were built by June and most of them will be ready and sold to dealers before the end of the 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 during the quarter, down more than 15% from a year ago.

The company confirmed its full-year net profit forecast of $9.6 billion to $11.2 billion with pre-tax profits of $13 billion to $15 billion. For the first time, the company forecasted it would earn $2.3 billion to $2.6 billion pre-tax in the second quarter. That lagged analysts’ estimates of $3.97 billion, according to FactSet.

The chip shortage has been irritating 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 US to about 1 million, compared to about 4 million in normal years at any time.

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That has pushed prices to record levels and limited vehicle selection, but it has also led to strong gains for most automakers.

In a prepared statement, GM said North American production has been relatively stable since the third quarter of last year, but short-term outages in parts continue. “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 have forecast a small improvement in the chip shortage in the first half of the year, with inventories much better from July to December.

GM shares fell slightly to $31.69 in trading Friday morning after the filing was made public.

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