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GM Misses Profit Estimates as Chip Shortage Crimps Output

July 26, 2022

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General Motors Co. reported weaker second-quarter profit than analysts’ estimates as semiconductor shortages kept production volumes in check. The automaker also warned it is bracing for tougher times ahead.

Noting “concerns about economic conditions,” CEO Mary Barra said in a shareholder letter July 26 that GM is taking measures to guard cash flows and rein in costs by cutting discretionary spending and placing limits on hiring.

“We have also modeled many downturn scenarios and we are prepared to take deliberate action when and if necessary,” the CEO said.

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