Global chip shortage forces 95,000 GM, GM to build in 2022

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Global chip shortage forces 95,000 GM, GM to build in 2022

DETROIT, Michigan, global shortage of computer chips, vehicles, Detroit automaker, General Motors, and 95,000 vehicles built by Detroit automaker General Motors GM without needed components in the second quarter of 2022 resulted in 95,000 vehicles being built in the second quarter of 2022.

In a regulatory filing last week, GM said that most of the incomplete vehicles, accounting for 16 percent of the total sales from April through June, were built in June, with most expected to be sold to dealers before the end of the year.

GM sold more than 582,000 vehicles during the quarter, some 15 percent less than one year ago, while it reiterated its full-year net income of $9.6 billion to $11.2 billion with pretax earnings of $13 to $15 billion.

Since 2020, the global chip shortage has forced many factories to close factories and reduce production, limiting the supply of new vehicles available to U.S dealers to some 1 million, compared to 4 million in normal times.

Carmakers have achieved minimal profits, but shortages pushed prices to record levels and limited vehicle selections.

Since the third quarter of 2021, GM stressed that North American production has been relatively stable, but short-term parts disruptions are continuing.

It said we are working with our suppliers to resolve issues as they arise to meet the pent-up customer demand for our vehicles.

Most automakers are anticipating a recovery in chip supplies in the first half of the year, especially from July to December.

GM shares fell to $31.69 in late week trading after the filing was made public.