Monday, September 26, 2022
HomeBusinessG.M. Profit Falls 40 Percent as Costs Rise and Chips Are Lacking

G.M. Profit Falls 40 Percent as Costs Rise and Chips Are Lacking

General Motors said its profit fell by 40 percent in the three months ending in June amid rising costs and an ongoing computer chip shortage, which has limited production for automakers around the world.

The company reported $1.7 billion in profit for the second quarter, down from $2.8 billion in the same period in 2021. Revenue rose by more than 4 percent, to $35.8 billion from $34.2 billion a year ago.

G.M. sold 817,000 cars and light trucks worldwide in the second quarter, up from 760,000 in the year-ago period.

“We have been operating with lower volumes due to the semiconductor shortage for the past year, and we have delivered strong results despite those pressures,” G.M.’s chief executive, Mary T. Barra, said in a statement.

She added that G.M. was taking steps to manage costs, conserve cash and limit hiring in view of the uncertain economic outlook. “We have also modeled many downturn scenarios and we are prepared to take deliberate action when and if necessary,” she said.

The company reiterated its forecast that it would earn $9.6 billion to $11.2 billion in profit this year.



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