Chip shortage leaves 95,000 GM vehicles unfinished

Global shortages of computer chips and other parts forced General Motors to produce 95,000 vehicles without certain components in the second quarter of the year.

The automaker said in a filing to federal regulators on Friday that most of the incomplete vehicles were made in June and that it expects most of them to be completed and sold to dealers before the end of the year.

Unsold vehicles accounted for 16 percent of GM's total sales from April through June. The company said on Friday that it sold more than 582,000 vehicles during the quarter, down 16 percent from a year ago.

The company reaffirmed its forecast of net income of $9.6 billion to $11.2 billion for the year, with pre-tax income of between $13 billion and $15 billion. For the first time, the company forecast it would earn between $2.3 billion and $2.6 billion before taxes in the second quarter. That's less than analyst forecasts of $3.97 billion, according to FactSet.

Chip shortages have upended automakers around the world since 2020, forcing many to temporarily close plants and cut production. The shortage has limited the supply of new cars at dealerships across the United States to about a million. Normal is about 4 million.

That has pushed prices up to record levels and limited vehicle selection, but has allowed most producers to reap hefty profits.

In a prepared statement, GM said its North American production has been relatively stable since the third quarter of last year, but short-term parts supply disruptions continue. “We are actively working with our suppliers to resolve issues as they arise so we can meet pent-up consumer demand,” the statement said.

Most producers have forecast a slight improvement in the chip situation in the first half of the year, with supplies much better from July to December.

GM shares fell slightly to $31.69 on Friday morning after the report.