General Motors Q2 profits fall 40% on supply woes, confirms forecast

General Motors reported a big drop in second-quarter profits Tuesday due to the grinding semiconductor shortage, although the automaker confirmed its full-year forecast amid strong pricing.

A shortage of parts prevented the Detroit giant from shipping more than 90,000 vehicles, resulting in a 40 percent decline in profits to $1.7 billion.

Nevertheless, the automaker said it would ramp up production in the second half of 2022.

Revenues rose 4.7 percent to $35.8 billion.

GM reported sharply lower auto deliveries in all regions, including China, where pandemic restrictions curbed sales.

A silver lining has continued to be limited dealership inventories that have kept pricing strong. In the U.S., the average price was up $6,600 compared with the year-ago period.

GM alluded to strong customer demand "with most vehicles turning immediately as they arrive at dealers," the company said.

"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," said GM Chief Executive Mary Barra in a statement.

Barra alluded to worries about a slowdown or recession, saying, "we have modeled many downturn scenarios, and we are prepared to take deliberate action when and if necessary."

(CGTN)