GM expects $ 1.5-2 billion impact on chip shortage as Toyota sees no problem yet

General Motors estimates that it will experience an impact of $ 1.5-2 billion in 2021 due to the current shortage of semiconductor chips affecting the auto industry.

Chief Financial Officer Paul Jacobsen said the general managers Fourth-quarter results indicate that the situation is too fluid to say exactly how much volume will be lost, but that the company hopes to make up much of it later in the year.

GM routes supplies to factories that build its full-size trucks and cost-effective SUVs, which are currently operating at full capacity, and the reduction of facilities that produce models with high stocks and the possibility of completing production in the second half of 2021 whether the shortage is adequately addressed.

With the chip issue in mind, Jacobson forecast diluted EPS of $ 4.40 to $ 5.25 for the coming year.

The automaker has cut production at several factories in recent weeks and has completely halted production at three North American factories that make sedans and small SUVs until mid-March.

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Many automakers have been hit by the shortage, including Stellantis and Ford, which the latter said last week that production could be impacted by 10-20% in the first half of the year, but Toyota said on Wednesday it did not have to cut production and don’t expect to do so in the short term.


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Kristina McManus

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