GM raises forecast, says chip shortage not as bad as feared

General Motors says efforts to manage the global computer chip shortage have worked better than expected, so it’s financial results will improve over previous forecasts

DETROIT -- General Motors Co. says efforts to manage the global computer chip shortage have worked better than expected, so it's financial results will improve over previous forecasts. The company said in a statement Thursday it has made engineering changes, prioritized semiconductor use and pulled some potential deliveries into the second quarter. So now the first-half earnings will be significantly better than forecasts it issued earlier in the year. GM had predicted a first-half pretax profit of around $5.5 billion when it released first-quarter earnings in May. The company also said it's optimistic about the full year, but gave no further details. Shares of GM rose 6.3% in Thursday afternoon trading to $63.42, close to the stock's 52-week high.