General Motors sold 582,401 vehicles during the second quarter, down 15% over the last year, as the automaker was hit by supply chain disruptions, including delayed semiconductor shipments, all of which will hurt profits during the quarter.
The automaker revealed in a Securities and Exchange Commission filing that 95,000 vehicles in its inventory were manufactured without certain components, the majority of which were built in June.
A majority of these vehicles will be sold to dealers before the end of 2022, with deliveries expected to occur through the second half of 2022, according to the report.
In a statement, GM North America President Steve Carlisle said that we appreciate the patience and loyalty of our dealers and customers as we strive to meet significant pent-up demand for our products. We will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible. In the second quarter, GM expects net income to be between $1.6 billion and $1.9 billion, much less than the estimates of FactSet of $2.46 billion. Earnings are expected to be in the range of $2.3 billion and $2.6 billion.
It has full year guidance for fiscal 2022 despite the manufacturing issues.
Shares of General Motors have fallen about 48% year to date as of the time of publication.
The GM sales and market share increased sequentially for the third consecutive quarter, despite U.S. vehicle sales dropping on an annual basis.
The company's daily, government and commercial rental deliveries increased by 29%. Sales to commercial and government customers were 73% of the fleet sales mix. Commercial demand was particularly strong for full-size vans, up 12%, full-size pickups, up 14%, medium-duty trucks, up 13% and midsize pickups, up 65%.
GM said that the production of its Cadillac Lyriq is accelerating, with initial deliveries in progress. Orders for the 2023 model year sold out within a matter of hours, and preorders for the 2024 model opened on June 22.
GM plans to increase production of the Cadillac Lyriq and GMC Hummer EV pickup in the second half of 2022.