Chip Shortage Sent GM’s Q3 Revenue Plunging 25%
Suspensions and curtailments in vehicle production sparked by the global chip shortage sent General Motors' Q3 revenue plunging nearly 25% year over year to $26.8 billion, reported the automaker Wednesday. The stock closed 5.4% lower Wednesday at $54.26. “Adjusted automotive…
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free cash flow was negative $4.4 billion during the quarter, due to higher work-in-process inventory related to vehicles produced without certain modules and working capital impacts from plant downtime and lower production levels as a result of the ongoing semiconductor shortage,” said Chief Financial Officer Paul Jacobson on a quarterly earnings call. GM expects “sequentially higher volumes” of vehicle production in Q4, “despite some ongoing volatility in the supply chain, which our teams continue to work to mitigate,” said the CFO. GM expects in Q4 to “clear the majority” of its unfinished-vehicle inventory, but anticipates that some of that inventory "will remain at year-end,” he said.