GM expects $1.5-$2 billion chip shortage impact while Toyota sees no problem yet

GM will focus on building full-size trucks

General Motors estimates it will experience a $1.5-$2 billion hit in 2021 due to the ongoing semiconductor chip shortage affecting the auto industry.

CFO Paul Jacobsen said on GM's Q4 earnings call that the situation is too fluid to say exactly how much volume will be lost, but that the company hopes to make much of it up later in the year.

GM is shifting supplies to the factories building its profitable full-size trucks and SUVs, which are currently running at full capacity, and cutting back at facilities that produce models with high inventories and the opportunity to make up production in the second half of 2021 if the shortage is adequately addressed.

Factoring in the chip issue, Jacobson forecasted a diluted EPS of $4.40 to $5.25 for the upcoming year.

The automaker has reduced output at several plants in recent weeks and has entirely stopped production at three North American facilities that build sedans and small SUVs until mid-March.


Many automakers have been impacted by the shortage, including Stellantis and Ford, the latter of which last week said production could be impacted by as much 10% to 20% in the first half of the year, but Toyota on Wednesday said it hasn’t had to reduce production and doesn’t expect to in the near term.