General Motors Co. on Friday reported a 15 percent fall in second-quarter auto sales as a global chip shortage and supply chain disruptions impacted production, leaving nearly 100,000 vehicles waiting for more parts.
The US auto industry is struggling to keep up with pent-up consumer demand for new cars as it struggles to ramp up production due to chip shortages, a labor shortage and issues related to supply chain deadlocks.
GM, which last year lost its crown as sales leader to Toyota for the first time since 1931, said it sold 582,401 vehicles in the quarter ended June, up from 688,236 vehicles last year.
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However, the Detroit-based automaker is expected to remain the top new-vehicle seller for the quarter, according to Cox Automotive, as industry-wide disruptions eat into inventories at other major automakers.
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GM also said it expects net income of between $1.6 billion and $1.9 billion in the second quarter. According to data from Refinitiv, analysts on average are estimating earnings at $2.56 billion. It wasn’t immediately clear if the numbers were comparable.
Automakers are expected to report US new vehicle sales for the three months to June on Friday and Tuesday.
Toyota has been one of the hardest-hit automakers this year, as chip shortages and China’s COVID-19 lockdowns — which have also hit other automakers — have forced the company to repeatedly cut production, calling its full-year production targets into question.
According to data from Cox and TrueCar, Toyota – along with Stellantis, Hyundai Motor Co., Honda Motor Co. and Nissan Motor Co Ltd. – report decline in quarterly sales with the exception of Ford.
Cox officials said Ford, which reports June sales Tuesday, has managed its inventories better than most and is also recovering from last year’s struggles.
Tesla Inc. will be the only major brand to grow sales in the first half of the year, Cox said.
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Industry watchers are concerned about the potential impact of decades of high inflation and rising gasoline prices on the auto industry, but note that demand remains strong at the moment, an unusual situation.
A major impediment to rising auto sales still seems to be the industry-wide shortage of cars and trucks, which has prompted analysts to lower their full-year sales forecasts.
“A rebound in vehicle production in 2022 seems highly unlikely at this point,” said Jessica Caldwell, executive director of insights at auto industry consultant Edmunds.
https://globalnews.ca/news/8961395/general-motors-supply-chain-production-issues/ GM has nearly 100,000 vehicles idle awaiting parts amid supply shortages – National