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95,000 GM vehicles unfinished in storage due to chip shortage – CBC News

Published

2 years ago

July 2, 2022

The global shortage of computer chips and other parts has forced General Motors to build 95,000 vehicles without certain components during the second quarter.

The Detroit automaker said in a regulatory filing Friday that most of the incomplete vehicles were built in June, and it expects most of them to be finished and sold to dealers before the end of the year.

The unsold vehicles amounted to 16 per cent of GM’s total sales from April through June. The company said Friday it sold more than 582,000 vehicles during the quarter, down more than 15 per cent from a year ago.

In a statement to CBC News, a spokesperson said only a small percentage of those vehicles, to be completed at a later date, were reserved for Canadian dealers.

The company reaffirmed its full-year net income guidance of $9.6 billion US to $11.2 billion with pretax earnings of $13 billion to $15 billion. For the first time, the company predicted it would make $2.3 billion to $2.6 billion before taxes in the second quarter. That fell short of analyst estimates of $3.97 billion, according to FactSet.

The chip shortage has vexed automakers around the globe since 2020, forcing many automakers to temporarily close factories and trim production. The shortage has limited the supply of new vehicles on dealer lots in the U.S. to around 1 million, when in normal years it’s about 4 million at any given time.

That has pushed prices to record levels and limited vehicle selection, but it’s also led to strong profits for most automakers.

In a prepared statement, GM said its North American production has been relatively stable since the third quarter of last year, but short-term parts disruptions are continuing.

“We are actively working with our suppliers to resolve issues as they arise to meet pent-up customer demand for our vehicles,” the statement said.

Most automakers have predicted minor improvement in the chip shortage during the first half of the year, with far better supplies from July through December.

GM shares fell slightly to $31.69 in Friday morning trading, after the filing was made public.

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Business

Get ready for more cases tackling misleading fees after Cineplex ruling, expert says

Published

10 hours ago

September 24, 2024

Anne Joseph

TORONTO – At least one competition expert says the record $38.9 million fine against Cineplex Inc. is bound to encourage more action against companies engaged in a deceptive practice known as drip pricing.

The theatre operator was found late Monday to have engaged in the practice, where customers are drawn into a purchase without full disclosure of the final cost.

The Competition Bureau’s case against Cineplex related to a $1.50 charge many customers were forced to pay when purchasing movie tickets online.

Vass Bednar says these types of fees are common across many sectors, providing plenty of fodder for potential future cases that could delve into the pricing of airline, bus and concert tickets.

The executive director of McMaster University’s master of public policy program says the Competition Bureau’s success with the Cineplex case shows there’s no issue too small for the watchdog to go after.

Cineplex maintains it has always been upfront about its $1.50 online booking fees and has said it will appeal the fine levied by the Competition Tribunal.

This report by The Canadian Press was first published Sept. 24, 2024.

Companies in this story: (TSX:CGX)

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Business

CDPQ buys stake in U.K. power company from Brookfield Asset Management

Published

12 hours ago

September 24, 2024

Anne Joseph

MONTREAL – The Caisse de dépôt et placement du Québec has signed a deal with Brookfield Asset Management and its institutional partners to buy their 25 per cent stake in British power company First Hydro Co.

Financial terms of the deal by the Quebec investment manager were not immediately available.

First Hydro is responsible for the management and operation of two power plants in Wales.

Emmanuel Jaclot, CDPQ’s executive vice-president and head of infrastructure, says the investment marks the fund’s first foray into pumped hydro storage.

French utility Engie is the majority shareholder in First Hydro with the remaining 75 per cent stake.

The deal is expected to close by the end of 2024.

This report by The Canadian Press was first published Sept. 24, 2024.

Companies in this story: (TSX:BAM)

Note to readers: This is a corrected story. The headline in an earlier version incorrectly stated the country where First Hydro is located.

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Brookfield sells Saeta renewable power business to Masdar for US$1.4B

Published

12 hours ago

September 24, 2024

Anne Joseph

TORONTO – Brookfield Renewable and its institutional partners have signed an agreement to sell its Saeta Yield renewable energy business in Europe to the UAE’s Masdar in a deal valued at US$1.4 billion.

Saeta is an independent developer, owner and operator of renewable power assets in Spain and Portugal.

Masdar will acquire a portfolio of 745 megawatts of predominantly wind assets and a development pipeline of about 1.6 gigawatts worth of projects.

The deal excludes a regulated portfolio of 350 megawatts of solar power assets, which Brookfield will keep and continue to operate.

Mohamed Jameel Al Ramahi, chief executive officer at Masdar, says Saeta is a perfect complement to the company’s portfolio in Europe.

Masdar was established in 2006 and has developed and invested in projects in over 40 countries with a combined capacity of over 20 gigawatts.

This report by The Canadian Press was first published Sept. 24, 2024.

Companies in this story: (TSX:BEP.UN)

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