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General Motors Stock Slides As Global Chip Shortage Hammers Q3 US Sales

GM's third quarter U.S. sales fell by nearly a third from last year as the global semiconductor shortage continues to plague the world's biggest automakers.

General Motors  (GM) - Get General Motors Company (GM) Report posted a steep decline in third quarter U.S. car sales Friday, but repeated its full-year profit forecast as the ongoing shortage in global semiconductor supplies continues to hit the country's biggest automakers. 

GM said third quarter deliveries were down 32.8% from the same period last year, with an overall tally of 446,997 vehicles shifted in the United States. That puts the industry one pace for full-year sales of 13.4 million units, GM said, down from a pace of 15.5 million at this point in October of 2020.

GM CFO Paul Jacobson told an investor conference last month that he expects "a more stable year" for semiconductor supplies in 2022, while the company boosted its full-year profit guidance to between $11.5 billion and $13.5 billion following its second quarter earnings. 

“GM has been agile and decisive in managing COVID-related impacts on our production and wholesale volumes and we appreciate the support of our dealers and the loyalty of our customers,” said GM North American VP Steve Carlisle. “The semiconductor supply disruptions that impacted our third-quarter wholesale and customer deliveries are improving.'

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"As we look to the fourth quarter, a steady flow of vehicles held at plants will continue to be released to dealers, we are restarting production at key crossover and car plants, and we look forward to a more stable operating environment through the fall,” he added.

GM shares were marked 0.5% lower in late-morning trading Friday to change hands at $52.45 each. 

Both Ford F and GM unveiled additional plant closures and production cuts linked to the global shortage in semicoductors this week, in fact, with the later halting Mustang production at its Flat Rock, Michigan as well as Transit van production in Kansas City, starting next week.

General Motors, meanwhile, extended the closure of its Chevy Blazer-focused plant in Coahuila, Mexico, by around two weeks, although it also said operations in Lansing, where Cadillac production has been halted since May, will resume on Monday.

Ford shares were marked 0.6% lower in late morning trading Friday at $14.07 each.