Staff of Reuters 2 minutes ReadFILE PHOTO: The new General Motors emblem is visible on the facade of the company’s headquarters in Detroit, Michigan, United States, on March 16, 2021. REUTERS/Reuters/Rebecca Cook – GM reported a 40% increase in second-quarter U.S. sales on strong customer demand on Thursday, and said it expects the trend to continue in the second half of the year and into 2022. Auto demand in the United States has been boosted by low interest rates, government assistance, and a desire for private automobiles as a result of the COVID-19 pandemic. In morning trading, shares of the American automaker were up 0.5 percent at $59.48. In a statement, GM Chief Economist Elaine Buckberg said, “We predict ongoing robust demand in the second half of this year and into 2022.” “The US economy is picking up speed, consumer spending is strong, and employment opportunities are plentiful.” According to industry consultants J.D. Power and LMC Automotive, consumers are buying more expensive automobiles despite lower discounts, enhancing profitability for both automakers and dealers. Low inventories caused by a global semiconductor scarcity hampered the company’s performance in the quarter, according to the company. “But I’m not concerned since demand is strong and the economy is improving. Furthermore, the worst of the chip shortage for automobiles appears to be in Q2, so things could improve from here “David Whiston, a Morningstar analyst, stated. Sanjana Shivdas contributed reporting from Bengaluru, and Vinay Dwivedi edited the piece./n
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