GM Exec Predicts 'Challenging' Q3 Amid Chip Shortage
Sept. 13, 2021—General Motors on Friday warned Wall Street investors it's anticipating a larger-than-expected hit to sales through the rest of the year due to the ongoing global semiconductor chip shortage.
According to a report from the Detroit Free Press, GM CFO Paul Jacobson told analysts the automaker expects both second-half sales and production to be down around 200,000 units, with most of that hit coming in the third quarter.
"The global supply chain continues to deteriorate a little bit," Jacobson said. "We've got multiple impacts that have worsened, primarily, the semiconductor supply chain risk. As you know, inventories have been very, very thin all year. And that's going to give us a little bit of risk throughout the year."
The projected hit is bigger than when GM last spoke with investors. During its second-quarter earnings call, GM projected units would be down around 100,000 from the 1.1 million it had delivered in the first half.