GM’s second quarter sales up nearly 40%

General Motors’ U.S. vehicle sales during the second quarter were somewhat lower than analyst expectations as an ongoing shortage of semiconductor chips impacted production and dealer inventories.

On Thursday the automaker reported sales of 688,236 vehicles during the second quarter, up 39.7% from a year earlier when the coronavirus pandemic led to strict lockdown restrictions and temporarily closed auto dealerships. Analysts expected GM’s sales to increase by between roughly 40% and 43%, according to forecasts from auto research firms Edmunds and Cox Automotive.

“Consumer demand for vehicles is also strong, but constrained by very tight inventories. We expect continued high demand in the second half of this year and into 2022,” said Elaine Buckberg, GM chief economist, in a statement.