GM raises forecast, says chip shortage not as bad as feared

National/World

DETROIT (AP) — General Motors says efforts to manage the global computer chip shortage have worked better than expected, so it’s financial results will improve over previous forecasts.

The company says in a statement Thursday it has made engineering changes, prioritized semiconductor use and pulled some potential deliveries into the second quarter. So now first-half earnings will be significantly better than forecasts it issued earlier in the year.

The company also says it’s optimistic about the full year, but gave no further details. In May, GM had predicted a pretax profit of around $5.5 billion for the first half of 2021.

In the first quarter the company turned a $2.98 billion net profit as strong U.S. consumer demand and higher prices offset production cuts brought on by the chip shortage.

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