GM is back in the black. General Motors on Wednesday reported a quarterly profit of $2.8 billion, rebounding from a loss of over $800 million last year.
Fattening its bottom line: strong demand for its most-profitable trucks and sport utility vehicles - and the higher prices its able to charge for them. That offset the costs stemming from production disruptions and the $800 million hit the largest U.S. automaker took from the recalls of its Chevrolet Bolt electric vehicle.
But those disruptions could continue. A global shortage of chips has hampered production at major automakers. GM said it had $1.4 billion worth of vehicles in inventory built without certain electronics modules due to the lack of semiconductors.
GM CEO Mary Barra said the chip shortage will continue to impact the company into 2022.
For now, the rapid spread of the Delta variant of the coronavirus is raising uncertainty at GM. Starting Wednesday, it, along with the United Auto Workers and rivals Ford and Stellantis reinstated mask mandates at all U.S. plants, offices and warehouses.
Shares of GM fell in early trading Wednesday.