Ford, GM profits fall as sales drop due to chip shortage

By TOM KRISHER
AP Auto Writer

DETROIT (AP) — The global computer chip shortage cut into third-quarter profits at both Ford and crosstown rival General Motors, with both companies having to temporarily close factories, pinching supplies on dealer lots. Ford’s net income of $1.83 billion was down 23% from a year ago. GM’s profit dropped 40% to $2.4 billion. For both automakers, high prices mainly for the pickup trucks and big SUVs that they sold eased the sting from lower sales. Ford, which reported results after Wednesday’s closing bell, said its revenue dropped 5% from a year ago to $35.68 billion. But the company said it would resume paying a 10-cent-per-share dividend starting in the fourth quarter, at a cost of $400 million per quarter.