GM Affirms 2022 Profit Outlook, but Shares Drop as Net Income Sinks 40 Percent

The GM logo on the facade of the General Motors headquarters in Detroit on March 16, 2021. Rebecca Cook/Reuters

DETROIT—General Motors Co. on Tuesday reaffirmed its full-year profit outlook on an expected surge in demand and said it was curbing spending and hiring ahead of a potential economic slowdown, but a 40 percent drop in its quarterly net income disappointed, sending shares lower.

The Detroit automaker’s net income fell 40 percent in the second quarter from a year earlier due to supply-chain snarls, including a global semiconductor chip shortage that hit hardest in June. The company’s shares fell 3.5 percent in midmorning trading.