As the chip shortage around the world continues to hamper the performance and revenues of the car manufacturing industry, General Motors is also facing its negative impact. Still, the chief financial officer (CFO) of General Motors (GM) has managed to save the day for the company.
The data shows that on Friday, September 10, 2021 stock market, the share prices for General Motors experienced a significant rise. The company witnessed this rise following a couple of statements released by the CFO of GM, Paul Jacobson.
The first announcement Jacobson made was surrounding the company managing to get reimbursed a handsome figure. Jacobson revealed that from the battery recall, the company will be able to get reimbursed a billion dollars.
The second announcement Jackson made was surrounding the supply for the semiconductors that the company needs on a large scale to keep the ball rolling for General Motors.
It was at the Global Industrials Conference at RBC that was held on Friday, September 10, 2021, where Jacobson talked about the company’s forecast for the production of its cars.
He revealed that despite the downtrend and chip shortage in the year 2021, they are looking at a promising year ahead of them. He stated that they are hopeful that the year 2022 will be entirely different from the year 2021 in terms of supply for semiconductors.
Jacobson talked about the future supply of chips just a few days after the announcement of GM extending the closure of its manufacturing plants. As a result of the chip shortage, General Motors had reportedly shut down two of its assembly plants that will remain closed until the situation is in control. The particular plants for General Motors were in Missouri and Ohio.
He confirmed that they are very confident that they will soon be getting reimbursed by $1 billion for the recalling of batteries for Chevy Bolt. Jacobson confirmed that LG Chem Ltd. will be the company to reimburse them for $1 billion.
The batteries were recalled by the company as they had two major defects that could lead to the batteries catching fire, which would eventually lead to burning the cars.
The stats show that on Friday, September 10, 2021 trading, the share prices for General Motors experienced a 3% rise and the day ended at a figure of $49.88 per share.
During the conference, Jacobson also talked about them reducing the number of productions by 200,000 for the second half of 2021. Still, Jacobson was confident in saying that they will not be making any changes to their guidance for the year 2021. Their company would still deliver 2021 with high revenue figures.