GM Q3 profit drops amid semiconductor crunch
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New York (AFP) – General Motors said Wednesday its third quarter profit fell amid a semiconductor shortage that has hit auto sales, but that it remains optimistic about the year.
GM said net income dropped to $2.4 billion in the quarter ended September 30, from just over $4 billion in the same three months of 2020.
"The quarter was challenging due to continuing semiconductor pressures," GM chief Mary Barra said in a letter to shareholders.
The scarcity of computer chips as the global economy emerges from pandemic shutdowns has hit automakers worldwide, forcing some to scale back production.
The US auto giant saw sales fall in all regions and across all brands.
But Barra said the automaker expects full-year results to be near "the high end" of the projected range of $11.5 billion to $13.5 billion.
The first nine months of the year generated a profit of $8.3 billion, more than double the $3.6 billion gain in the pandemic months of last year, the company said.
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