GM says 95,000 cars sold without components in second quarter

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GM says 95,000 cars sold without components in second quarter

General Motors was forced to build 95,000 vehicles without certain components during the second quarter due to the global shortage of computer chips.

The Detroit automaker said in a regulatory filing Friday that most of the incomplete vehicles were built in June and that most of them will be sold to dealers by the end of the year.

From April through June, the cars sold for 16% of GM's total sales. The company sold more than 582,000 vehicles during the quarter, down more than 15% from a year ago.

The company stated its full-year net income guidance was $9.6 billion to $11.2 billion with pretax earnings of $13 billion to $15 billion. For the first time, the company predicted that it would make $2.3 billion to $2.6 billion before taxes in the second quarter.

Since 2020, the chip shortage has enraged automakers across the globe, forcing many automakers to close factories and reduce production. The shortage has limited the supply of new vehicles on dealer lots in the U.S. to around 1 million, while in normal years it's about 4 million at any given time.

It has resulted in record prices and limited vehicle selection, but it has also led to strong profits for most automakers.

In a prepared statement, GM said North American production has been relatively stable since the third quarter of last year, but short-term parts disruptions are continuing. The statement said we are working with our suppliers to resolve problems that arise to meet customer demand for our vehicles.

GM shares rose 2% to $32.42 in trading early Friday after filing was made public.