A General Motors executive recently indicated that the worst of the global shortage in microchips could be over.
According to a recent report from CNBC, General Motors CFO Paul Jacobson said that the shortage appeared to be improving. “Over the last couple of weeks as we talked about this being a volatile situation, we’ve actually seen the situation get better for us,” Jacobson said during a Wolfe Research conference on Wednesday. “At this point, I would say that we’re highly confident about being able to hit our guidance that we put out to the Street.”
Earlier in February, General Motors said that it expected $10 billion to $11 billion in adjusted pretax profits for the 2021 calendar year. The prediction included the impact of the global microchip shortage, with a $1.5 billion to $2.5 billion hit to free cash flow.
“We feel confident that we’re working through this issue and that we’ll be able to return to normal as soon as the back half of this year,” Jacobson said, adding that the automaker does not expect the microchip shortage to be an issue going forward.
So far, the global microchip shortage has affected the entirety of the automotive industry, cutting into production as recovery from the COVID-19 pandemic continues. General Motors expressed concern over the shortage in January, and was later forced to cut production at several of its facilities, including Fairfax (Kansas), Ingersoll (Ontario), San Luis Potosi (Mexico), and Bupyeoung (South Korea).
According to global automotive forecasting company AutoForecast Solutions, the chip shortage is estimated to have resulted in losses of 56,600 GM vehicles from North American production facilities, with the most heavily impacted facility being GM’s San Luis Potosi plant in Mexico.
The microchip shortage has also affected availability of optional equipment offered for General Motors’ latest full-size SUV models, some of the most popular (and profitable) vehicles that the automaker offers.
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Comments
That’s good news for gm as well as the country’s overall economy.
I hope all the worst fro GM especially for Cami. im empolyee and we have been treated so unfairly. We work hard for less money. They are they take advantage if workers.
So you hope they do worse so they can treat you worse? You make a good wage compared to the average factory worker, you have decent benefits when most have none. Why do you stay if you feel you’re being treated so unfairly?
I work at Cami to Buddy and 36 bucks an hour full benefits and a pension is pretty damn good. Not sure what you mean by treated unfairly?
Don’t worry, Biden’s going to give $37 billion to silicon valley DNC owned companies to make chips in Californian factories staffed by entitled hipsters who need 15 minute emotional breaks every hour to check social media. Should be REALLY productive and put China out of business once and for all.
5 years from now…
Did Bill Gates stop diverting microchips to his vaccine?
Adjust your tinfoil hat, your lack of brains are showing.
Sounds like CAMI needs a better contract to work under.
What does that even mean? How could a contract predict a global shortage?
I just want the corvette I ordered in 2019!
Even Lays chips are based in Texas.