General Motors Profit Beats Estimates, but Chip Shortage Could Cost $2 Billion in 2021
General Motors (NYSE: GM) reported a fourth-quarter profit that beat Wall Street's estimates, but said that an ongoing shortage of semiconductors could shave up to $2 billion from its profits in 2021.
GM's guidance for 2021 calls for an adjusted operating profit between $10 billion and $11 billion, taking into account the net impact of between $1.5 billion and $2 billion resulting from the worldwide chip shortage.
GM said on Tuesday that it will extend shutdowns at three of its North American assembly plants until at least mid-March, amid a shortage of chips that has hit auto production in factories around the world. The chip manufacturers have struggled to keep pace with a sharp rise in sales of personal computers amid the COVID-19 pandemic.
Source Fool.com
