By TOM KRISHER, AP Auto Writer
DETROIT (AP) — General Motors’ second-quarter net income fell 40% from a year ago as computer chip and parts shortages hobbled factory output and drove the company’s U.S. sales down more than 15%.
The Detroit automaker said it made $1.67 billion from April through June, in part because it couldn’t deliver 95,000 vehicles during the quarter because they were built without one part or another. Last year it made $2.79 billion.
The company reported an adjusted profit of $1.14 per share, falling short of Wall Street expectations for $1.27. Revenue was $35.76 billion for the quarter, beating estimates of $33.9 billion, according to FactSet.
Like other automakers, GM has been forced to slow its factories since late in 2020 largely due to a global shortage of semiconductors.
CEO Mary Barra said in a recent interview with the AP that GM will see supply chain challenges into next year.
Most of GM’s incomplete vehicles were built in June, the company said, and it expects them to be finished and sold to dealers before year’s end.
Also Tuesday, GM announced that is has commitments for all the raw materials needed to reach its goal of building 1 million electric vehicles per year by the end of 2025.
The company also said it has a deal with LG Chem to supply nickel, cobalt, manganese and aluminum to make electric vehicle battery cathodes. LG Chem will supply over 950,000 tons of material during the next eight years . The two companies will explore a cathode materials production facility in North America by the end of 2025, they said in a statement.
GM also announced a contract with Livent to supply battery-grade lithium hydroxide from a brine operation in South America over a six-year period starting in 2025. The Philadelphia company’s lithium also will be used in cathodes.
Cathodes are the negative terminal of a battery.
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