General Motors is now expecting less vehicle sales and production in the second half of 2021 than previously expected.
The global chip shortage will cut GM’s wholesale deliveries by about 200,000 vehicles in North America during the second half of the year compared with the 1.1m it delivered in the first half of the year, CFO Paul Jacobson said during an RBC Capital Markets conference, according to a CNBC.com report.
That cut is double the 100,000 units that was expected when GM reported second-quarter earnings in August.
Despite the increase, Jacobson said the company was maintaining its most recent guidance for 2021.
“We’re still going to deliver a year that’s higher than what we originally thought coming into January,” Jacobson was quoted as saying, adding much of the impact would occur in the third quarter.
According to CNBC, Jacobson said the company expected 2022 to be a “more stable year” for the semiconductor supply chain even if it’s “not back to completely unconstrained” levels.
The semiconductor chip shortage is expected to cost the global automotive industry $110 billion in revenue in 2021, according to a May forecast from consulting firm AlixPartners cited by CNBC.