General Motors reported a big drop in second-quarter profits Tuesday due to the grinding semiconductor shortage, although the automaker confirmed its full-year forecast amid strong pricing.
Profits fell 40 percent to $1.7 billion as the Detroit giant was unable to deliver more than 90,000 vehicles unfinished due to missing parts.
But the car manufacturer said production in the second half of 2022 would be “up sharply.”
Revenues rose 4.7 percent to $35.8 billion.
GM reported sharply lower auto deliveries in all regions, including China, where government restrictions connected to the latest Covid-19 outbreak dented sales.
A silver lining has continued to be limited dealership inventories that has kept pricing strong. In the United States, the average price was up $6,600 compared with the year-ago period.
GM alluded to strong customer demand “with most vehicles turning immediately as they arrive at dealers,” the company said in a powerpoint.
“We have been operating with lower volumes due to the semiconductor shortage for the past year, and we have delivered strong results despite those pressures,” said GM Chief Executive Mary Barra in a statement.
Barra alluded to worries about a slowdown or recession, saying “we have modeled many downturn scenarios and we are prepared to take deliberate action when and if necessary.”
Shares fell 1.3 percent to $34.08 in pre-market trading.
