GM cites chip shortage for weaker 2021 outlook

[February 10, 2021]  DETROIT (Reuters) - General Motors Co on Wednesday reported a higher-than-expected fourth-quarter profit on strong demand for trucks and SUVs during the COVID-19 pandemic but forecast weaker-than-expected 2021 results citing a shortage of chips used in car production.

General Motors Chief Executive Officer Mary Barra poses after making an announcement of a major investment focused on the development of GM future technologies at the GM Orion Assembly Plant in Lake Orion, Michigan, U.S. March 22, 2019. REUTERS/Rebecca Cook

Shares were down 1.2% to $55.50 in premarket trading.

GM said it earned $2.8 billion, or $1.93 a share, compared with a loss of $194 million, or 16 cents a share, in the prior year.

For the full year, GM earned $6.4 billion, down from $6.7 billion in 2019.

GM said its 2020 operating margin was 7.9 percent, including 9.4 percent in North America.

The automaker expects a chip shortage to trim $1.5 billion to $2.0 billion from its 2021 operating profit.

(Reporting by Ben Klayman and Paul Lienert in Detroit; Editing by Nick Zieminski)

[© 2021 Thomson Reuters. All rights reserved.]

Copyright 2021 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.