Image copyright Reuters Image caption Automakers are increasingly relying on their own chip suppliers to provide sensors and control systems to keep their vehicles connected to smartphones
US car giant General Motors is facing a steep profit slump, due partly to a shortage of chips used in cars.
It made $393m (£333m) during the three months to 31 March – down 25% on the same period last year.
CEO Mary Barra attributed the drop to “reduced demand for certain vehicle electronics chips”.
Separately, GM said it had planned to spend around $3.7bn (£2.9bn) in relation to autonomous vehicles in the next year.
In a conference call with investors on Tuesday, the company gave more details about how it plans to adapt its cars for new technology, amid growing competition.
For instance, it said it was “evaluating how best to co-create key vehicle technology”, such as electric engines, with Google and Apple .
Automakers are increasingly relying on their own chip suppliers to provide sensors and control systems to keep their vehicles connected to smartphones, for example.
GM’s own manufacturing factories are now far more sophisticated, which means that they can meet supply chain needs far more efficiently, the company said.
Meanwhile, an update from the company’s management team includes 13 pages of goals, including the push to reinvent the ownership structure of its “assets”.
Image copyright Reuters Image caption Tech giants such as Apple and Google are taking their battle for the dashboard to the UK and Europe
On Tuesday, the company reported a 5% rise in overall vehicle deliveries in the United States during the first quarter.
However, sales volumes fell 1% in China and 16% in Europe and South America.
“GM’s first-quarter results were at the top end of our guidance but below expected US industry volumes. Pricing improved in the quarter, which was offset by lower volumes as new product launches coincided with the Chinese New Year holiday,” said Ms Barra.
