General Motors Says Efforts To Manage Chip Shortage Paying Off, To Increase Deliveries Of Certain Models

Coronavirus pandemic-led lockdowns led to global chip shortage. While the chip shortage is far from over, companies are apparently coming out of it with the help of initiatives they have been taking. One such company is General Motors Co. which has announced that the efforts it took in the last few months to tackle the shortage of semiconductors have started to pay off. The carmaker said that it is now in a position to increase the deliverers of some models. It said the deliveries in the second quarter would be increased in Canada and the United States. GM said that there are huge demands for certain models like Chevrolet, Buick, GMC, and Cadillac. According to the company, certain assembly plants in the United States would not take any vacation downtime to meet the strong consumer demand. The company said it is trying to supply as many cars as possible.

The company has said that the efforts to handle the shortage of semiconductors worked unexpectedly and this is why it expecting better financial results. It said that the results of the first-half earnings will be better than the previous forecasts issued by the company. According to a release issued by the company, it has prioritized semiconductor use in the second quarter. The first-half pretax profit of USD 5.5 billion was earlier suggested by General Motors. Though the company emphasized that it is optimistic about the results of the full year, it refused to give any further details. The company managed to overcome the production cuts because of the shortage of semiconductors on the back of strong consumer demand in the United States and higher prices. The company registered a net profit of USD 2.98 billion in the first quarter.

The company said that production would be increased by 1000 trucks per month for the Chevrolet Silverado HD and GMC Sierra HD. Giving more details, General Motors said that shipments of Chevrolet Colorado and GMC Canyon will be increased by 30,000 units. “As a result of all the efforts, the company is hopeful of better financial results,” the company said in a release. The company had earlier forecasted the pretax profit of USD 10 billion to USD 11 billion. While announcing the forecast, the company had said that it is expecting that it would be at the high end of the range.