GM Sees Brighter Profit Outlook as It Fends Off Computer-Chip Crunch
June 03 2021 - 9:58AM
Dow Jones News
By Mike Colias
General Motors Co. expects profits to be better in the first
half of the year than it previously projected, citing steps it is
taking to blunt the impact of the computer-chip shortage that has
hampered global vehicle production for months.
GM on Thursday said it expects pretax profit for the first half
of the year to be significantly better than guidance it issued a
month ago. The auto maker said it is working to boost vehicle
deliveries to dealerships, which have seen inventory fall to the
lowest levels in decades.
The nation's largest auto maker by sales said it has begun
shipping tens of thousands of pickup trucks and other vehicles that
had been built but waylaid in parking lots nearby its U.S.
factories, awaiting needed components before being shipped. It also
said it has been able to pull ahead some future semiconductor
deliveries into the second quarter to help lift production.
GM said the chip situation remains fluid and will continue to
disrupt production. It said it is optimistic it can make up ground
in the second half of the year and continues to prioritize
production of large pickup trucks and sport-utility vehicles, its
biggest money makers.
GM's revised outlook is likely a welcome sign for an industry
that has been coping with decades-low inventory levels because of
the chip shortage, just as American car shoppers turn out in
near-record numbers.
(END) Dow Jones Newswires
June 03, 2021 09:49 ET (13:49 GMT)
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