GM warns of manufacturing issues in second quarter but stands by 2022 forecast

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Mary Barra, Chair and CEO of the General Motors Company (GM), speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 2, 2022.
Patrick T. Fallon | AFP | Getty Images

DETROIT – General Motors on Friday said it expects net income during the second quarter to be between $1.6 billion and $1.9 billion and pre-tax adjusted earnings to be in the range of $2.3 billion and $2.6 billion.

Shares of the automaker were down by 2% after briefly being halted during pre-market trading, pending news.

GM did not previously provide a forecast for its second quarter.

The forecasts were part of a filing by the automaker disclosing that it has about 95,000 vehicles in its inventory that were manufactured without certain components as of June 30, a majority of which were built in June. GM said it expects that “substantially all of these vehicles” will be completed and sold to dealers before the end of 2022.

Despite the issues, GM stood by its previously announced guidance for 2022 that includes net income of between $9.6 billion and $11.2 billion, pre-tax adjusted earnings of between $13 billion and $15 billion, or $6.50 and $7.50 a share, and adjusted automotive free cash flow guidance range of between $7 billion and $9 billion.

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