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U.S. Automakers Post Higher Quarterly Sales Even As Chip Shortage Bites


The semiconductor chip scarcity and extreme winter climate in south west United States in February have induced automakers to close factories, turning analysts cautious in regards to the pace of the sector’s restoration in 2021.


The need for increased personal safety during the COVID-19 pandemic has boosted sales for automakers

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The want for elevated private security through the COVID-19 pandemic has boosted gross sales for automakers

Automakers on Thursday reported a rebound in first-quarter U.S. gross sales from a coronavirus-induced hunch final yr, however volumes had been capped by a world chip shortage that compelled many corporations to chop manufacturing. The want for elevated private security through the COVID-19 pandemic has boosted gross sales for automakers, as individuals want touring by their very own vehicles to utilizing public transportation.

The semiconductor chip scarcity and extreme winter climate in south west United States in February have induced automakers to close factories, turning analysts cautious in regards to the pace of the sector’s restoration in 2021.

Also Read: Hyundai Faces Production Disruption From April Due To Chip Shortage​

“March auto sales are shaping up to meet or exceed pre-COVID levels. The big rebound from the prior month was assisted by stimulus and any pent-up demand from weather impacts in February,” IHS Markit analyst Chris Hopson mentioned.

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General Motors Co mentioned its first-quarter U.S. gross sales rose 4 per cent to 642,250 automobiles

“However, the stronger sales results are bumping against ongoing production issues, creating what could be a volatile demand environment over the next few months.”

General Motors Co mentioned its first-quarter U.S. gross sales rose 4 per cent to 642,250 automobiles, helped by elevated demand for its Escalade sport utility automobiles and Encore subcompact crossover SUVs.

“We are operating our truck and full-size SUV plants at full capacity and we plan to recover lost car and crossover production in the second half of the year,” GM Executive Vice President Steve Carlisle mentioned.

The No.1 U.S. automaker mentioned it expects the nation’s auto demand to stay “strong” by way of the yr, with rising client confidence and spending, aided by stimulus funds, increased vaccination charges and the reopening of the economic system.

Fiat Chrysler’s U.S. arm mentioned first-quarter gross sales rose 5 per cent to 469,651 automobiles, on account of increased Jeep SUVs and Ram pickup vans demand. Fiat Chrysler is a unit of Stellantis NV. Ford’s quarterly U.S. automobiles gross sales had been up 1 per cent at 521,334 automobiles, with retail gross sales rising 23 per cent.

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Ford’s quarterly U.S. automobiles gross sales had been up 1 per cent at 521,334 automobiles, with retail gross sales rising 23 per cent

Higher demand and tight provide has allowed automakers to lift costs within the United States, with common worth of a brand new car reaching $37,314 within the first quarter, up practically $3,000 from a yr earlier and over $4,000 increased than 2019, auto consultancies J.D. Power and LMC Automotive mentioned.

Also Read: General Motors Further Cuts Production In North America Due To Global Chip Shortage​

GM mentioned it set a first-quarter file with common transaction costs at $40,353. The firm estimates that the seasonally adjusted annual gross sales tempo for the primary quarter of the yr was round 16.7 million models.

Japan’s Toyota Motor mentioned its U.S. gross sales jumped practically 22 per cent to 603,066 automobiles within the quarter, whereas South Korea’s Hyundai Motor’s U.S. gross sales surged about 28 per cent to 167,130 automobiles.

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Randy Parker, Hyundai govt president of gross sales, mentioned he sees a number of pent-up demand within the U.S. market as rental automotive corporations are additionally anticipating a restoration in journey and “beating down our door for production.”

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