General Motor’s has raised its first half profit guidance and reporting some success in managing the global semiconductor crisis and shifting its product mix to in-demand trucks in North America.
GM said it increasing deliveries to dealers and benefiting from ongoing efforts to prioritize semiconductor usage, initiate engineering solutions that maximize the utilization of chips as well as the pull-ahead of some projected semiconductor deliveries into the second quarter.
The company now expects its first half financial results to be significantly better than the first half guidance previously provided. GM also said in a statement it is ‘optimistic about the full year and expects to share additional information during its second quarter earnings conference call on August 4.
GM said the production of the Chevrolet Silverado HD and GMC Sierra HD full-size pickups will increase by about 1,000 trucks per month beginning in mid-July as a result of production line efficiencies delivered by the team at Flint Assembly in Michigan.
Shipments of Chevrolet Colorado and GMC Canyon mid-size pickups built at Wentzville Assembly in Missouri will increase by about 30,000 total units from mid-May through the week of July 5 as the team completes dynamic vehicle testing on units held at the plant due to semiconductor supply disruptions.
Smaller volumes of vehicles held at other plants also will complete dynamic vehicle testing and ship to dealers during June and July, GM said.
In addition, US assembly plants that build GM’s most capacity-constrained products will not take any dedicated vacation downtime this summer.
“The global semiconductor shortage remains complex and very fluid, but the speed, agility and commitment of our team, including our dealers, has helped us find creative ways to satisfy customers,” said Phil Kienle, GM vice president, North America Manufacturing and Labor Relations. “Customer demand continues to be very strong, and GM’s engineering, supply chain and manufacturing teams have done a remarkable job maximizing production of high-demand and capacity-constrained vehicles.”
However, GM also said that production at certain manufacturing facilities in North America, Asia and South America will continue to be impacted by the global semiconductor shortage through June and July. As global semiconductor supply recovers, the company expects to implement similar actions in markets around the world to resume production and increase deliveries to dealers through the second half of the year. GM also said it continues to work with its suppliers and policy leaders to develop long-term solutions to the semiconductor supply issues that have impacted all automakers.