General Motors said it made a $3 billion profit in the first three months of the year, but warned that its profit would be significantly smaller in the second quarter because of a global shortage computer chips.
Last year, G.M. made a profit of just $294 million in the first quarter as the coronavirus pandemic took hold and shut down much of the global economy.
The company forecasts net income for the first half of the year would total about $3.5 billion, implying a profit of around $500 million in the second quarter. It said it expected a rebound in the second half and predicted net income for the full year to range from $6.8 billion to $7.6 billion.
“This remains a challenging period for the company as we emerge from 2020, but the team continues to demonstrate its ability to manage complex situations,” G.M.’s chief executive, Mary Barra, said in a letter to shareholders.
Separately, Stellantis, the company formed by the merger of Peugeot SA and Fiat Chrysler, reported revenue of 34 billion euros ($41 billion) since the merger was completed on Jan. 17. Had the merger been completed earlier, the new company’s revenue for the full first quarter would have been 37 billion euros, up 14 percent over the same period a year ago.
Stellantis said its production in the first quarter was 11 percent lower than planned because of the chip shortage, and it also warned that the second quarter would be weaker than the first.
The European Union’s administrative arm said Wednesday that it would take action against foreign companies that receive financial support from their governments, a move clearly aimed at China amid signs of deteriorating ties.
The tougher line against China comes only four months after Brussels and Beijing seemed to be moving closer, working out an agreement in December intended to make it easier for European companies to invest in what has become the bloc’s most important trading partner for goods.
But since then relations have gone downhill because of tension over Chinese policy toward minority groups in Xinjiang province.
Legislation proposed by the European Commission Wednesday would give it power to investigate and take measures against foreign companies that use government subsidies to get an unfair advantage over domestic competitors, an accusation often leveled at China. A separate proposal, also announced Wednesday, is intended to make Europe less dependent on China for crucial goods like semiconductors, drugs and batteries.
The proposals came a day after Valdis Dombrovskis, the European commissioner…
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