GM CFO: ‘Q3 will be challenging’ with chips, but automaker expects to meet guidance

Detroit — General Motors Co. now expects to lose up to 200,000 vehicle deliveries in the second half of the year because of the continuing chip shortage, doubling its previous projection, CFO Paul Jacobson revealed during RBC’s Global Industrials Conference Friday.

Rising COVID-19 cases and increased restrictions at chip plants have placed pressure on the already limited chip supply, forcing automakers to halt more production. GM this week, for example, had to stop making light-duty trucks for a week and only had four plants running in North America. Truck production is back next week. 

Despite the chip struggle, GM isn’t changing its projected guidance of $11.5 billion to $13.5 billion in adjusted earnings for the year. But Jacobson warned the third quarter “will be challenging.”

“We still believe that we’re going to be able to hit our calendar year guidance range,” he said. “We’re continuing to use all the tools that are available, whether it’s in vehicle pricing or in building some vehicles without the particular chips, and then finishing them later.”

khall@detroitnews.com

Twitter: @bykaleahall

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