General Motors Revenue and Profit Hit Hard by Chip Shortage
General Motors said it earned $2.4 billion in the third quarter, down from $4 billion a year earlier, as revenue fell 25 percent.
G.M.’s revenue and profit are hit hard by the global chip shortage.
A General Motors dealership in Englewood, Colo.Credit…David Zalubowski/Associated Press
Oct. 27, 2021, 8:04 a.m. ET
General Motors earned $2.4 billion in net income in the three months ending in September, a big drop caused by the shortage of computer chips that has disrupted auto production around the world.
The automaker reported Wednesday that revenue in the third quarter fell 25 percent to $26.8 billion. In the comparable period in 2020, G.M. made $4 billion in net income on $35.5 billion in revenue.
“The quarter was challenging due to continuing semiconductor pressures,” G.M.’s chief executive, Mary T. Barra, said in a letter to shareholders.
The shortage of semiconductors has been forcing automakers to idle plants for weeks at time. In August and September, G.M. halted production temporarily at plants across North America, including several that make its highly profitable pickup trucks and large sport utility vehicles.
Despite the chip shortage, G.M. said it was on track to make a profit of $8.1 billion to $9.6 billion for the full year.