General Motors Chief Financial Officer Paul Jacobson is expecting its chip supply to even out in 2022 as suppliers work to catch up with an uptick demand.
According to Reuters, Jacobson told investors in a conference call this week the automaker expects a “more stable year” in 2022 with regard to chip supply. GM has been among the hardest-hit automakers amid the semiconductor pinch, trimming its global production output by 777,928 vehicles through the first eight months of 2021. Some GM plants, like the Fairfax Assembly site in Kansas, have been offline since February due to a shortage of chips, leaving thousands of hourly employees out of work.
GM has managed to mitigate the effects of the chip shortage by prioritizing profitable, hot-selling products like the Chevy Silverado and GMC Sierra pickups and full-size SUVs like the Chevy Tahoe and GMC Yukon. Despite its best efforts, the automaker has still experienced some production setbacks at its truck plants. Last week, it paused production at its Fort Wayne Assembly plant in Indiana and Silao Assembly plant in Mexico, which are expected to come back online on September 13th.
“Although the situation remains fluid, we’re focused on continuing to leverage every available semiconductor to build and ship our highest demand products,” GM’s U.S. vice president, Sales Operations, Kurt McNeil, said earlier this year.
Despite these setbacks, Jacobson said this week the automaker still expects to post a strong pre-tax profit of $11.5 billion to $13.5 billion this year, Reuters reports. The automaker posted earnings of $2.8 billion in Q2 2021 on $34.2 billion in revenue. It also saw its U.S. sales jump 40 percent year-over-year in Q2, with sales increasing at all four of its brands. Chevy Silverado and GMC Sierra sales helped drive this increase, climbing by 36 percent as light-duty models posted strong segment share gains.
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Comments
So why do the overpaid salary CO’s still get payed. Hourly workers get screwed.
This the way its aways been, work your way to the C suite if you don’t like it… BTW, you ever notice at the baseball stadium the players get paid millions, while the guy carrying the beer gets minimum wage? This world values different talents at different wage levels, you don’t like the curve, change what you do…
speaking of baseball … the baseballs are made in haiti, some of the bats arre imported, all the while .225 hitters, and pitchers with 5.5 ERA’S are paid 10’s of millions
the best thing about the c suite is you can be terrible at your job and make off like a bandit.
If Heike is a man, he may not want to change genders. gm is a woke company and being a woman is a prerequisite for moving up the ranks.
Need to compete with Hyundai Tucson, Nissan Rogue in size & styling. Offer this in GMC or Chevrolet.
Wasn’t General Motors plant in Kokomo, Indiana one of the most advanced chip producers in the world. We should be making our own chips in America. Let’s lead the way again.
Kokomo cannot possibly be reopened to make chips, because the parking lot is needed to store all the GM trucks that are needing chips. I hope you can appreciate this logic.
The profitability per vehicle is so high because of demand, I suspect they don’t want to tamper with that by opening a union plant back up to make chips.
Due to ship shortage my Chevy volt is stuck on my driveway for two months waiting to be be repair. Wish general motors put priority on their custommers insted of trying to sell more cars.
The jokes on you for buying the Chevy Volt.
Should of went with a Toyota.
I don’t believe a word the Corporate Eff Off Says.
This shortage wont be over like the pandemic wont be over. Steve is out of touch.
you are probably right. there is a huge segment of the population that would rather take horse de-worming medicine than the vaccine just because some cable/radio loud mouth suggested it.
Not to mention some bubbling invalid in the white house…
Chips should be sent to American truck plants first not Mexico. So sad GM is building autos in Mexico then sending back to America for sales.