GM Stock Rallies As Automaker Says It Expects First-Half Results To 'Significantly' Outperform Guidance

General Motors Company GM stock is trading at its highest level in about a month after the company issued an update on its anticipated performance for the first half of the year.

GM Says It Will Exceed Guidance: General Motors said Thursday it expects its results for the first half of the year to be better than its previous guidance.

The company attributed the optimism to its efforts to prioritize semiconductor usage, its success engineering solutions that maximize the utilization of chips as well as the pull-ahead of some projected semiconductor deliveries into the second quarter.

"Customer demand continues to be very strong, and GM's engineering, supply chain and manufacturing teams have done a remarkable job maximizing production of high-demand and capacity-constrained vehicles," said Phil Kienle, GM's vice president for North America manufacturing and labor relations. 

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GM Steps On Gas Pedal: The automaker also announced steps to increase deliveries to dealers and customers in the U.S. and Canada to meet strong demand for its Chevrolet, Buick, GMC and Cadillac vehicles.

Among the steps: increasing production of Chevrolet Silverado HD and GMC Sierra HD full-size pickups by about 1,000 trucks per month beginning in mid-July. The company also sees shipments of Chevrolet Colorado and GMC Canyon mid-size pickups built at its Wentzville Assembly increasing by 30,000 units from mid-May.

Additionally, smaller volumes of vehicles held at other plans will complete dynamic vehicle testing and ship to dealers during June and July, according to GM.

The assembly plants building the automaker's capacity-constrained products will not take any dedicated vacation downtime this summer, the automaker said. 

GM Optimistic On Fiscal Year 2021: The automaker also said it is optimistic about the full year. The company added that it plans to share additional information on its Aug. 4 second-quarter earnings call. 

While conceding that the  global chip shortage will impact production at certain manufacturing facilities in North America, Asia and South America through June and July, the company said it expects to take similar action in markets around the world to resume production and increase deliveries to dealers through the second half of the year.

"GM continues to work with its suppliers and policy leaders to develop long-term solutions to the semiconductor supply issues that have impacted all automakers."  

At last check, GM shares were rallying 5.62% to $63.

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