The Wall Street Journal reports that the worldwide microchip shortage is taking a toll on profits at two major care manufacturers hoping to cash in on the newfound popularity of electric vehicles.
The two largest U.S. auto makers reported steep drops in third-quarter profit as the computer-chip shortage dented factory output, and each said the problem would leave dealership lots nearly bare well into 2022.Executives from General Motors Co. and rival Ford Motor Co. said the supply-chain disruptions should slowly improve in the fourth quarter and throughout next year, although strong car demand will make it difficult to restock dealership lots.
The Journal reports that GM says its net profit dropped 40% in the third quarter, while Ford reported a 23% decline in net income compared with the same year-ago quarter.
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