General Motors Cuts Its Profit By 2.7% Until March Due To Supply Problems

General Motors has ended the first quarter of the year with profits of 2,773 million euros (2,939 million dollars), which represents 2.7% less compared to the same period of the previous year, due to the increase in costs, as well as by the shortage of semiconductors.

General Motors’ adjusted earnings through March fell 8.4% year-on-year to 3,776 million euros ($4,004 million).

The turnover of the North American multinational in the first quarter of the year reached 33,938 million euros (35,979 million dollars), which represented an increase of 10.8% in the interannual rate.

General Motors worldwide sales in the period reached 1.42 million units, which was 18.1% less compared to the same quarter of the previous year.

The president and CEO of General Motors, Mary Barra, said in a statement that, despite “the difficulties of the macro environment”, the company continues to have great confidence in the future and in the transformation towards the production of electric vehicles.

Likewise, the directive has pointed out that launching more electric vehicles faster “is the catalyst for growth”, while ensuring that they are accelerating volumes with the objective of having the capacity to produce one million electric vehicles in North America by the end of 2025 . In fact, the goal of General Motors is to achieve a production of all-electric models for 2022 and 2023 of 400,000 units.

Forecasts
As for forecasts for the rest of the year, General Motors estimates that net profit will be between 9,057 and 10,566 million euros (9,600 and 11,200 million dollars).

Likewise, the North American automobile giant estimates that it will have adjusted earnings of between 12,263 and 14,150 million euros (13,000 and 15,000 million dollars).

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