Ford and GM report third-quarter profit dips due to chip shortage

America's automotive manufacturers continue to struggle amidst the ongoing semiconductor shortage, with Ford and General Motors reporting third-quarter revenue drops.

The chip crisis has affected GM the most, as the highest-selling manufacturer in the United States reported a 40 per cent drop in profits on 2020 levels – now at US$2.4 billion (AU$3.19bn) to the end of September.

According to Automotive News, GM's annual earnings should finish up around US$13.5bn (AU$17.97bn), a solid result given the shutdowns at its plants throughout the year thanks to the semiconductor shortage.

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Ford has fared slightly better, with its net income falling by just 23 per cent from the same point in 2020, with the Blue Oval so far taking in US$1.83bn (AU$2.44bn) so far this year.

Overall revenue has dropped by five per cent from 12 months ago, now standing at US$35.68bn (AU$47.49bn), although the situation could be far worse given US sales have fallen by 27 per cent in the third quarter of 2021 – unfortunate given it's the manufacturer's native and most successful market.

The Associated Press reports the average price for a new Ford was more than US$51,000 (AU$68,000) – a 13 per cent increase over 2020 levels, helping it to claw back money after supply shortages.

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For the first time since the start of the coronavirus pandemic, Ford will pay shareholders a 10-cent quarterly dividend from the start of the fourth quarter, costing the company roughly US$400m (AU$532.45m) per quarter.

It's been a heavy few months of investment from both manufacturers, as both seek to introduce electric pick-up trucks to the American market from 2022, coming in the form of Chevrolet's Silverado and Ford's F-150 Lightning.