Supply chain issues continue to plague the auto industry, with GM currently waiting for parts for some 95,000 vehicles.
Since the early days of the pandemic, automakers have struggled to keep up with demand as semiconductors and other components have been in short supply. Despite the pandemic easing, the supply chain issues continue to be a major problem, with GM still not able to secure enough semiconductors.
As a result, GM will hold about 95,000 vehicles manufactured without certain components in company inventory until they are completed and will recognize revenue when they are sold to dealers, which is expected to happen throughout the second half of 2022. The impact of these events, which is not expected to impact GM’s full-year earnings guidance, is discussed in an SEC Form 8-K filed today.
Despite the news, the company is still bullish on its overall outlook, based on its past quarters and its upcoming lineup.
“GM’s sales and market share have grown each of the last three quarters, even with lingering supply chain disruptions,” said Steve Carlisle, GM executive vice president and president, North America. “Our long-term momentum will continue to build thanks to the launches of groundbreaking new EVs like the GMC HUMMER EV and Cadillac LYRIQ, and the tremendous customer response to the Chevrolet Silverado and GMC Sierra.”