Car sales plunge as chip shortages choke off supply – CNN

Widespread Motors reported gross sales fell A third from a yr-in the past final quarter, They typically have been off 40% from The identical quarter of 2019 earlier than the pandemic roiled the automotive market. Sales at Stellantis, The agency shaped by the merger of Fiat Chrysler and France’s PSA Group, fell 19% from a yr in the past, and 27% from the pre-pandemic interval.

At Toyota Motor, Which inagencys Toyota and Lexus, third quarter gross sales edged up 1.4% As in contrast with a yr in the past. However that three-month complete Consists of a 22% plunge in September gross sales. (The agency breaks out month-to-month gross sales numbers, in distinction to GM and Stellantis.) Whereas Toyota has reported fewer current chain disruptions than completely different primary automakers it, too, has Needed To Scale again manufacturing at some factories extra recently.

So All of the automakers leveled to semiconductor current chain disruptions and traditionally low inventories as A duncookedback for gross sales.

“Whereas The numerous current chain factors dealing with our enterprise proceed to influence out there inventory, All of us know the demand for our automobiles Continues to be there,” said Jeff Kommor, US head of gross sales for Stellantis.

The scarcity of automobiles has additionally led to doc-extreme prices For every new and used automotives for a lot of this yr, which has additionally been a drag on gross sales, as some consumers have been priced out of The mannequin new automotive market.The auto enterprise has been Dealing with a scarcity of pc chips needed To assemble automotives for Greater than a yr. GM (GM) said it expects the state of affairs will enhance Inside The final three months of 2021, but earlier this yr automakers had hoped issues would have enhanced by this level. Instead, GM has been pressured to briefly shut manufacturing of most of its North American crops.

“The semiconductor current disruptions that influenceed our third-quarter wholesale and buyer deliveries are enhancing,” said the nation’s largest automaker in A press launch. “As We look to the fourth quarter, A delicate circulate of automobiles held at crops will proceed to be launched to sellers, We’re restarting manufacturing at key crossover and automotive crops, and we Look forward to a extra safe working environment by way of The autumn.”

The Laptop Pc chip scarcity started when auto gross sales plunged Inside the early weeks of the pandemic, As a Outcome of of doc job losses and the short-term closure of many factories and sellerships. Most automakers, anticipating A protracted downturn in gross sales, trimmed orders for pc chips and completely different parts. When gross sales rebounded a lot faster than anyone anticipated, The current of chips had already gone to completely different buyers.Whereas the automakers anticipated To have The power To enhance their current of chips by The center of this yr, they have been hit by outbreaks of Covid circumstances in completely different areas, Similar to Southeast Asia, the place A lot of the chip crops have been shut. And completely different current chain factors, collectively with an imbalance of delivery containers and congestion On the nation’s ports, a scarcity of truck drivers and general labor scarcitys, started limiting currents of completely different needed parts and uncooked supplies.

Other automakers are As a Outcome of of report end outcomes later Friday or on Monday.