GM cites improved chip supply in raising financial guidance
DETROIT (AP) — Citing an improved supply of automotive computer chips, General Motors raised its financial guidance on Wednesday and said it expects to return to a normal production rate by the end of next year.
Chief Financial Officer Paul Jacobson told investors on a virtual chat with Credit Suisse that the company has seen improvement in the fourth quarter on costs and sales volume as demand for its vehicles remains strong.
Nearly all automakers have been hit by a global semiconductor shortage.
Jacobson said GM now sees pretax earnings for this year of around $14 billion, up from previous guidance of $11.5 billion to $13 billion.
Net income for the year is expected to be around $10 billion, GM said in a regulatory filing.