GM Falls as Supply Chain Issues Drag Q3 Deliveries Down By a Third
By Dhirendra Tripathi
Investing.com – General Motors stock (NYSE: GM ) fell 0.8% Friday as supply chain issues continued to drag its third-quarter delivery volumes by around a third.
The company said dealers delivered 446,997 vehicles in the U.S. in the third quarter, down 218,195 units from a year ago as semiconductor supply chain disruptions and historically low inventories hurt sales.
Covid-related supply chain disruptions in Malaysia were behind the drop, according to the company.
From America's GM to Germany's Volkswagen (OTC: VWAPY ) to Japan's Toyota (NYSE: TM ), the shortage of semiconductors has hurt every automaker in the world with varying degrees. The pandemic has kept factories in China, Vietnam, Malaysia and the rest of southeast Asia shut for extended periods, crippling production and choking supply chains. Many have been forced to cut their annual production and revenue targets.
The company said dealer inventory, including in-transit units, was 128,757 units at the end of September, with availability projected to improve during the ongoing quarter.
As of this week, GM said all of its full-size pickup, full-size SUV and midsize pickup truck plants in North America are operating.
Lansing Delta Township Assembly in Michigan, which builds the Buick Enclave and Chevrolet Traverse, and Lansing Grand River Assembly, which builds the Cadillac CT4, CT5 and Chevrolet Camaro, will resume regular production starting Monday, the company said.
GM said its financial outlook is still expected to be within the calendar year guidance range as it continues to make efforts to mitigate the effects of the semiconductor shortage and Chevrolet Bolt EV recall.
The company expects its full-year profit per share to be between $5.40 and $6.40 on a profit of $7.7 billion-$9.2 billion.
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