GM manufacturing plants could be missing $5 billion in car sales

General Motors says the shortages that affected GM sales and deliveries of cars in the third quarter are having a major impact on the company’s results, with a full 24 percent of the automaker’s…

GM manufacturing plants could be missing $5 billion in car sales

General Motors says the shortages that affected GM sales and deliveries of cars in the third quarter are having a major impact on the company’s results, with a full 24 percent of the automaker’s pre-tax earnings declining due to the ongoing shortfall.

GM didn’t provide the number of vehicles it estimated are affected, but according to the Wall Street Journal, GM could be missing billions of dollars in sales by the time the shortages reach their extreme stage early next year. GM could lose even more if the delays are in any of its core brands.

Reports from supplier companies suggest that the demand crunch started at the beginning of the third quarter, and spread to GM’s plants across the country in the second and third quarters. That fits with claims from GM that the company discovered the shortage earlier this year, and has been working with suppliers to adapt production of plants to address the problem.

With numbers of car sales falling from July, and with prices of cars rising with the labor contract with the United Auto Workers, GM blamed the shortages for slowing down and even reducing sales. The company reported a 1.5 percent decrease in overall sales in the third quarter, and “disappointing” U.S. sales of just over 2 million vehicles.

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