Common Motors’ automobile gross sales and manufacturing might be hit tougher by the worldwide chip scarcity in the course of the second half of the 12 months than beforehand anticipated.

The scarcity will lower GM’s wholesale deliveries by about 200,000 autos in North America in the course of the second half of the 12 months in comparison with the 1.1 million it delivered within the first half of the 12 months, GM CFO Paul Jacobson mentioned Friday throughout an RBC Capital Markets convention. That discount is double the 100,000 models that was anticipated when GM reported second quarter earnings in August.

Regardless of the rise, Jacobson mentioned the corporate is sustaining its most up-to-date steering for 2021.

“We’re nonetheless going to ship a 12 months that is larger than what we initially thought coming into January,” Jacobson mentioned, including a lot of the influence will happen within the third quarter.

GM final month raised its adjusted full-year steering to between $11.5 billion and $13.5 billion, or $5.40 to $6.40 a share, up from $10 billion to $11 billion, or $4.50 to $5.25 a share.

Low stock ranges of automobiles and vans amid resilient client demand have led to record-high pricing on new and used autos, producing wider revenue margins for automakers reminiscent of GM in addition to their financing corporations.

The brand new 200,000-vehicle influence follows GM saying or extending downtime final week for almost all of its crops in North America for various durations of time.

Jacobson mentioned the corporate expects 2022 to be a “extra secure 12 months” for the semiconductor provide chain, even when it is “not again to fully unconstrained” ranges.

Automakers, together with GM, have declined to launch new forecasts for the way a lot they anticipate the chip scarcity to influence earnings because of the volatility of the scenario. They beforehand forecast billions in losses because of the drawback, a lot of which has been offset by larger income from report automobile costs.

The semiconductor chip scarcity is predicted to value the worldwide automotive trade $110 billion in income in 2021, in line with a Could forecast from consulting agency AlixPartners.