Why GM is boosting its final forecast for 2021

Detroit – general motors Expects full-year adjusted pre-tax earnings to be around $14 billion, higher than previous forecasts, Chief Financial Officer Paul Jacobson He said during a show on Wednesday.

GM had previously forecast full-year pretax earnings of $11.5 billion to $13.5 billion.

Jacobson said GM’s financial performance benefits from strong consumer demand, higher prices for new cars and More stability of semiconductor supplies.

Jacobson warned that GM’s semiconductor supply and production of vehicles won’t return to normal until late 2022. GM’s vehicle stockpiles at dealerships will not return to normal soon.

“We haven’t fully recovered yet, and I don’t think we expect to be in 2022,” he said, but the chip situation was starting to stabilize.

Jacobson expects the crisis to improve in the second half of next year. “We are optimistic that we can reach a full employment rate by the end of next year,” he said.

General Motors is also struggling with rising costs for the goods used in its cars. “We see inflation everywhere,” Jacobson said.

So far, Jacobson said the company doesn’t see a significant impact of the novel coronavirus variant, Omicron.

“We’re continuing with the protocols we’ve put in place that have worked,” Jacobson said.

Write a Comment