"Parts Shortage" GM Faces 100,000 Unfinished Vehicle Inventory... Prolonged Semiconductor Shortage

[Asia Economy New York=Special Correspondent Joselgina] As the shortage of automotive semiconductors continues, it has been revealed that the American company General Motors (GM) has faced significant disruptions in production.

According to AP News and others, GM announced on the 1st (local time) that due to a shortage of semiconductors and other parts in the second quarter of this year, there are 95,000 unfinished vehicles in inventory that were assembled without these parts. Most of these unfinished vehicles were assembled in June. The company expects to complete and sell them by the end of the year. AP News reported, "this accounts for 16% of GM's total sales volume of 582,000 units in the second quarter."

This production disruption is inevitably affecting the second-quarter performance as well. GM's expected net profit for the second quarter is $1.6 billion to $1.9 billion, significantly below the market forecast of $2.46 billion compiled by financial information firm FactSet.

GM's automobile sales volume in the second quarter decreased by 15% compared to the same period last year, and sales volume for the first half of the year decreased by 18%, respectively.

Consulting firm AlixPartners predicted that the shortage of automotive semiconductors triggered by the COVID-19 pandemic will continue until 2024 and may become prolonged.