General Motors Takes Advantage of Higher Vehicle Prices
General Motors (GM) raised its forecast for the full year on Wednesday, with the automaker still seeing production hampered by the persistent shortage of semiconductors, but taking advantage of strong demand to sell its vehicles at lower prices. students.
The group, like the entire automotive sector, has suffered since the start of the year from a lack of semiconductors, elements that have become essential in cars loaded with electronics.
But GM has prioritized its most in-demand, and most profitable vehicles, like pickup trucks and SUVs. And customers are hungry for options.
The average price of a vehicle sold by GM in the United States was US $ 48,550 in the second quarter, according to the firm Edmunds.
The automaker’s finance arm, which lends money to car buyers, is also benefiting from sharply higher prices for used vehicles, which have soared due to low production of new vehicles.
GM’s revenue more than doubled in the second quarter to US $ 34.2 billion.
Its net profit was US $ 2.8 billion, down from a loss of US $ 800 million over the same period a year earlier. The sector was then hit hard by the first restrictions against the spread of COVID-19.
This year, GM’s earnings were affected by the cost of recalls of vehicles to the tune of US $ 1.3 billion, including $ 800 million for electric Chevrolet Bolts.
GM initiated a second recall of 69,000 units of this model in July after detecting two manufacturing defects in the battery, which could lead to fires.