General Motors Co. Chevrolet Traverse Sports Utility Vehicles (SUV) sit on the assembly line at the company’s assembly plant in Lansing Delta Township in Lansing, Michigan on Friday, February 21, 2020.
Jeff Kowalsky | Bloomberg | Getty Images
Vehicle sales and production at General Motors will be more severely affected by the global chip shortage in the second half of the year than previously expected.
The shortage will reduce GM’s wholesale shipments by about 200,000 vehicles in North America in the second half of the year, compared to the 1.1 million shipped in the first half, said GM chief financial officer Paul Jacobson on Friday during an RBC capital markets conference. That reduction is double the 100,000 units expected when GM reported its second quarter results in August.
Despite the increase, Jacobson said the company is maintaining its latest guidance for 2021.
“We’re still going to deliver a year higher than what we originally expected in January,” said Jacobson.
The automaker last month raised its adjusted annual forecast to $ 11.5 billion to $ 13.5 billion, or $ 5.40 to $ 6.40 per share, from $ 10 billion to $ 11 billion, or 4 $ 50 to $ 5.25 per share.
The increase comes after GM announced or extended downtime for almost every one of its plants in North America for different periods of time last week.