General Motors’ Income Tumbles 40% on China Loss, Parts Shortages

General Motors Co.’s GM -2.87%▼ net profit tumbled 40% in the second quarter, hurt by a loss in China and supply-chain troubles that left the company with tens of thousands of unfinished vehicles it couldn’t sell during the period.

GM executives reaffirmed the auto maker’s full-year profit outlook, saying they expect production to increase sharply in the second half as the computer-chip shortage eases, and that consumers continue to pay top dollar for new vehicles.