95,000 GM vehicles unfinished in storage due to chip shortage

General Motors has had to build 95,000 vehicles during the second quarter due to a global shortage of computer chips.

Detroit’s automaker saidFriday’s regulatory filing indicated that most of the unfinished vehicles were built in June. The company expects most of these vehicles to be finished and sold by dealers before the end.

From April to June, GM’s total sales included 16 percent of unsold vehicles. The company said Friday it sold more than 582,000 vehicles during the quarter, down more than 15 per cent from a year ago.

A spokesperson for CBC News made the following statement to CBC News: said only a small percentage of those vehicles, to be completed at a later date, were reserved for Canadian dealers.

The company reiterated its full-year net income guidance at $9.6 billion US to $1.2 billion, with pretax earnings of $13 trillion to $15 billion. The company forecasted that it would earn $2.3 billion to $2.6 million before taxes for the first time. FactSet reported that this fell short of analysts’ estimates of $3.97 Billion.

Automakers around the world have been plagued by a chip shortage since 2020. This has forced many automakers to temporarily close down factories and trim production. The shortage has slowed down the supply of new vehicles at dealer lots in the United States to just over 1 million. In normal years, it’s around 4 million.

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

In a prepared statement, GM saidIts North American production has remained relatively stable since last year’s third quarter, however, there are still short-term parts interruptions.

“We are actively collaborating with our suppliers to resolve any issues that arise to meet pent-up customers demand for our vehicles,” said the statement. said.

Automakers expect a slight improvement in chip shortages during the first half, with much better supplies between July and December.

After the filing was made public, GM shares dropped to $31.69 on Friday morning trading.