GM stocks surges as fourth-quarter deliveries fall, but inventories jump as chip-supply issues keep improving

Shares of General Motors Co. GM, +7.47% surged 5.1% in morning trading Tuesday toward a six-week high, after the auto maker said it the semiconductor supply issues that have plagued the auto industry improved during the fourth quarter. The company said it delivered 440,745 vehicles in the fourth quarter, down 43% from a year ago, when quarterly retail sales were the best in 13 years. Dealer inventory, including in-transit vehicles on their way to dealers, totaled 199,662 at the end of the fourth quarter, up 55% from a record low of 128,757 at the end of the third quarter. GE said it delivered 2.2 million vehicles in 2021, and extended its streak as the leader in combined full-size and mid-size pickup sales to eight years. For 2022, GM said it expects “economic growth in the U.S. and improving semiconductor availability” to lift total U.S. light industry sales to 16 million from 15 million in 2021. “The key constraint for sales continues to be reduced inventory levels as a result of the semiconductor shortage,” said GM Chief Economist Elaine Buckberg. “Those inventory levels are beginning to recover against a backdrop of strong fundamental demand conditions, with ample job openings, high household savings and low interest rates.” GM’s stock, which has was headed for a fifth straight gain, and 10th gain in 11 sessions, has soared 19.1% over the past three months, while the S&P 500 SPX, -0.06% has gained 11.6%.