GM reports lower Q2 sales due to supply chain woes
General Motors reported a 15 percent drop in US auto sales in the second quarter as supply chain woes continued to crimp inventories. The Detroit giant said it is holding 95,000 partially built vehicles in need of components that it expects to deliver by the end of 2022. For the quarter ending June 30, GM sold 582,401 autos, citing a strong performance for the pickup trucks, the Chevrolet Silverado and GMC Sierra, despite low inventories. The automaker said "pent-up demand" drove sales growth in other vehicles, including the Chevrolet Camaro and Chevrolet Colorado. GM reaffirmed its full-year profit outlook, but its second-quarter net income range of between US$1.6 billion and US$1.9 billion lagged consensus estimates. The auto industry has been plagued by supply chain woes over the last year, with a shortage of semiconductor chips especially impactful. Cox Automotive has forecast a 19.3 percent drop in US auto sales for the second quarter. "Even though economic conditions have worsened in the past months, the lack of supply is still the greatest headwind facing the auto industry today," said Charlie Chesbrough, senior economist at Cox. (AFP)