UPDATE 2-GM says flea situation is improving; reports first drop in sales in 4 quarters
(Add comment on chip shortage, industry background, stock movement)
Oct. 1 (Reuters) – Leading U.S. automaker General Motors Co said on Friday that the semiconductor chip shortage that had plagued the production of automakers around the world was diminishing, while reporting its first quarterly decline in sales in one year.
“As we look into the fourth quarter, a steady stream of vehicles held in factories will continue to flow to dealerships,” GM said, adding https://media.gm.com/media/us/en/ gm / news. detail.html / content / Pages / news / us / en / 2021 / oct / 1001-gmsales.html that he expected a “more stable operating environment”
The company said all of its full-size pickup truck, full-size sport utility vehicle and mid-size pickup truck factories in North America were up and running as of this week.
Chip shortages and supply chain disruptions have forced automakers around the world to cut production and, in some cases, produce vehicles without chips and park them at their facilities.
The problems, however, then allowed vehicles to be sold at higher prices due to record purchases from consumers, who are overflowing with cash amid low interest rates and rising wages.
“We plan to continue to sell any vehicles we can produce with rapid turnover,” said GM chief economist Elaine Buckberg.
The Detroit automaker’s third-quarter sales fell to 446,997 vehicles, down from 218,195 vehicles from the previous year.
GM shares, which have gained more than a quarter in value this year, were down 0.4% in afternoon trading. (Reporting by Abhijith Ganapavaram in Bangalore; editing by Maju Samuel)