GM chip shortage impact doubles to 200,000 cars

Friday, 10. September 2021 17:50

General Motors will have to withhold or cut production on 200,000 vehicles in the second half of the year, according to remarks made by Chief Financial Officer Paul Jacobson on Friday. This is double the amount of 100,000 expected in the second-quarter earnings report in August.

Jacobson was nonetheless optimistic that the company would maintain its guidance for 2021, stating that "we’re still going to deliver a year that’s higher than what we originally thought coming into January," and that the brunt of the impact would be felt in the third quarter.

Car manufacturers have been reluctant to release forecasts on the extent of the chip shortage impact due to the uncertainty of the situation, however previous forecasts of billions in losses appear to have been misguided due to offsets by higher profits from record vehicle prices.

Toyota also announced cuts in production targets earlier today.

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Author:
Breaking the News / IB