GM Sales Drop 15% as Unfinished Cars Hit Quarterly Results

General Motors reported a 15% drop in second quarter car sales on Friday and warned investors that supply chain issues would impact its earnings.

As the global shortage of parts and chips are still hurting car manufacturers’ production, GM left nearly 95,000 vehicles waiting for more parts, weighing on its quarterly results.

GM said it expects to finish those vehicles and sell to dealers before the end of 2022.

Besides the semiconductors shortage, the U.S. auto industry is struggling to ramp up production facing labor challenges and other supply chain related problems.

GM said it was expecting net income of between $1.6 billion and $1.9 billion in the second quarter. Analysts estimate a profit of about $2.56 billion, according to Refinitiv data.

GM said it sold 582,401 vehicles in the quarter through June versus 688,236 vehicles last year.

Despite all problems, GM stood by its previously announced guidance for 2022, that includes net income of between $9.6 billion and $11.2 billion.

Automakers are set to report U.S. new-vehicle sales on Friday and Tuesday. The filing was released ahead of GM reporting its second-quarter U.S. sales, which were down 15.4% from a year ago.