General Motors sold a total of 582,401 vehicles during the second quarter, down 15% year over year, as the automaker was slammed by supply chain disruptions, including delayed semiconductor shipments.
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The company revealed in a Securities and Exchange Commission filing that approximately 95,000 vehicles in its inventory were manufactured without certain components. The majority of the vehicles were built in June.
GM said that "substantially all of these vehicles will be completed and sold to dealers before the end of 2022."
"We appreciate the patience and loyalty of our dealers and customers as we strive to meet significant pent-up demand for our products," GM North America President Steve Carlisle said in a statement. "We will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible."
GM expects total net income for the second quarter in the range of $1.6 billion and $1.9 billion, below FactSet estimates of $2.46 billion. Adjusted earnings are expected to be in the range of $2.3 billion and $2.6 billion.
Despite the manufacturing issues, the company has maintained its full year guidance for fiscal 2022, including net income in the range of $9.6 billion and $11.2 billion, or $5.76 and $6.76 per share, pre-tax adjusted earnings in the range of $13 billion and $15 billion, or $6.50 and $7.50 per share, and adjusted automotive free cash flow in the range of $7 billion and $9 billion.
As of the time of publication, shares of General Motors have fallen approximately 48% year to date.
While U.S. vehicle sales dropped on an annual basis, GM increased its sales and market share sequentially for the third consecutive quarter.
The company's commercial, government and daily rental deliveries climbed a combined 29%. Sales to commercial and government customers were 73% of the fleet sales mix. Commercial demand was especially strong for full-size vans, up 12%; full-size pickups, up 14%; medium-duty trucks, up 13%; and midsize pickups up 65%.
In addition, GM said production of its Cadillac Lyriq is accelerating, with initial deliveries in process. Orders for the 2023 model year sold out within hours and preorders for the 2024 model opened on June 22.
GM plans to gradually increase production of the Cadillac Lyriq and GMC Hummer EV pickup in the second half of 2022.