General Motors revealed that its second-quarter sales surged almost 40% to 688,236 vehicles compared to last year’s figures when the pandemic forced a temporary closure of auto dealerships. Despite the significant jump, the figures slightly missed the 40% - 43% increase forecasted by analysts. The company also announced that currently are 211,974 vehicles in its inventory, marking a 37% decline from the 334,628 reported at the end of the first quarter.
Elaine Buckberg, GM chief economist, stated: “Consumer demand for vehicles is also strong but constrained by very tight inventories. We expect continued high demand in the second half of this year and into 2022.”
For the future, GM expects its first-half earnings to come in higher than the previous forecast as semiconductor shipments improve and plants are returning to full capacity.
General Motors is due to report Q2 earnings on August 3.
At the moment of writing, General Motors stock price is trading 0.17% higher. Since the beginning of the year, the company’s stock price added about 43%.
Sources: thestreet.com