GM lifts forecast as chip shortage eases, stock hits record

DETROIT (AP) — Shares of General Motors Co. closed at a record high Thursday after the company said its efforts to manage the global computer chip shortage have worked better than expected, so it’s financial results will improve. The automaker says it has made engineering changes, prioritized semiconductor use and pulled some potential deliveries into the second quarter. So now first-half earnings will be significantly better than forecasts it issued earlier in the year. GM is optimistic about the full year, but gave no further details. In May, GM had predicted a pretax profit of around $5.5 billion for the first half of 2021. In the first quarter the company turned a $2.98 billion net profit as strong U.S. consumer demand and higher prices offset production cuts due to the chip shortage.