- GM now expects to withhold or cut production on about 200,000 vehicles in North America during the second half of the year.
- That's double the 100,000 units that was expected when GM reported second-quarter earnings in August.
- Despite the increase, the company is maintaining its guidance for 2021.
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General Motors Co. Chevrolet Traverse sports utility vehicles (SUV) sit on the assembly line at the company's Lansing Delta Township Assembly Plant in Lansing, Michigan, on Friday, Feb. 21, 2020.Jeff Kowalsky | Bloomberg | Getty Images
General Motors' vehicle sales and production will be hit harder by the global chip shortage during the second half of the year than it previously expected, its finance chief said Friday.
The 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 1.1 million it delivered in the first half of the year, CFO Paul Jacobson said during an RBC Capital Markets conference. That reduction is double the 100,000 units that was expected when GM reported second-quarter earnings in August.
Despite the increase, Jacobson said the company is 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 said, adding much of the impact will occur in the third quarter.
GM last month raised its adjusted full-year guidance to between $11.5 billion and $13.5 billion, or $5.40 to $6.40 a share, up from $10 billion to $11 billion, or $4.50 to $5.25 a share.