General Motors on Monday reported its third-quarter earnings and disclosed new details about the chip supply problems that have affected the performance of its popular and highly profitable “Super Bowl ad” vehicles.
General Motors, which in September disclosed a massive chip supply chain issue that led to delays in the launch of some cars, announced that the issues were worse than it had previously believed. Among the problems it found were that chips it had ordered didn’t arrive on time in the field, and that it was able to only procure about three months’ worth of chips, instead of five, allowing GM to realize that some of its main components would be out of commission through much of 2019.
GM’s quarterly earnings, which it estimated would have been $1.25 a share instead of the prior estimate of $1.40, also suffered from an unexpected drop in revenue.
The earnings report followed the company’s announcement last week that it was exploring the acquisition of an electric automaker, as well as reports that auto giant Tesla was interested in buying a controlling stake in GM.
According to Bloomberg, General Motors’ U.S. sales were down for the first time in almost two years, hurt by a prolonged recall crisis.
Meanwhile, “Super Bowl ad” star and model Hannah Davis praised GM’s decision to launch the female-focused “Falcon” line of cars, saying: “The Super Bowl makes me feel like family … [these cars] promote positivity, independence and empowerment, instead of complacency, fear and limitations. We should all celebrate progress and the women who have changed our world.”
Super Bowl ad star Hannah Davis praises General Motors for its female-focused “Falcon” line of cars: “[The cars] promote positivity, independence and empowerment, instead of complacency, fear and limitations.” (Bennett Raglin/Getty Images for General Motors)
Read the full story at The New York Times.
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