GM reports big drop in 3Q US sales on semiconductor woes

General Motors reported a crisp driblet successful third-quarter US income connected Friday arsenic the planetary semiconductor crunch depletes dealerships of car proviso amid still-strong user demand.

The large US automaker described car inventories arsenic "historically low" aft months of constricted semiconductor supply, which has led to manufacturing outages and cuts passim its works network.

GM reported third-quarter sales of 446,997 successful the United States, down astir a 3rd from the year-ago period.

In the astir caller quarter, the spot shortage was exacerbated by a surge successful Covid-19 cases successful Malaysia, which is location to cardinal semiconductor capacity.

But Steve Carlisle, enforcement vice president of GM North America, said the issues with chips "are improving" and that it looks guardant to a "more unchangeable operating situation done the fall."

One upside of the proviso crunch for automakers has been rising vehicle prices, which tin assistance offset immoderate of the symptom from little sales.

In the 3rd quarter, GM's mean conveyance prices was $47,467, up astir 32 percent from the equivalent play successful 2018.

"While proviso has been constraining income successful caller months, underlying request conditions stay strong, acknowledgment to ample occupation openings, increasing pent-up conveyance request and excess savings accumulated by galore households during the pandemic," said GM Chief Economist Elaine Buckberg.

"We expect to proceed selling each conveyance we tin nutrient with accelerated turnover."

Shares of GM fell 0.2 percent to $52.63 successful greeting trading.

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© 2021 AFP