New vehicle sales dropped in the third quarter due to ongoing supply chain issues and a shortage of semiconductor chips, CNN Business reported.
Compared to the same quarter last year, General Motors sales dropped a third, and Stellantis sales slipped 19%. Toyota Motor sales inched up 1.4% for the quarter, but its September sales dipped 22%. Toyota Motor breaks out monthly sales, unlike GM and Stellantis, CNN Business noted.
The automakers attributed the declines to supply chain issues and the chip shortage, according to the report.
Tesla reported record quarterly worldwide vehicle deliveries but said it too had been affected by these issues, The New York Times reported.
“We would like to thank our customers for their patience as we work through global supply chain and logistics challenges,” the automaker said in a press release.
The shortage of computer chips needed to build vehicles has been affecting the industry for more than a year, according to CNN Business. When auto sales plunged in the early weeks of the pandemic, automakers trimmed orders for chips. Later, when auto sales rebounded, the chips had gone to other customers.
These supply disruptions have been affecting the used vehicle business too. Used car dealership chain CarMax said its inventory was 30% lower than it expected and down 15% year over year, cutting into vehicle availability but not yet impacting the company’s sales.
Read more: CarMax Struggles to Build Inventory as Vehicle Shortage Continues
CarMax President and CEO Bill Nash told analysts on a conference call the issue isn’t CarMax’s ability to acquire cars but rather continued fallout from the impacts of the pandemic. The company typically builds up its inventory early in the year, but it wasn’t able to do that because of disrupted new vehicle production and record sales in the spring.
“It certainly has been a headwind,” Nash said.
New automobile gross sales dropped within the third quarter because of ongoing provide chain points and a scarcity of semiconductor chips, CNN Enterprise reported.
In comparison with the identical quarter final 12 months, Normal Motors gross sales dropped a 3rd, and Stellantis gross sales slipped 19%. Toyota Motor gross sales inched up 1.4% for the quarter, however its September gross sales dipped 22%. Toyota Motor breaks out month-to-month gross sales, in contrast to GM and Stellantis, CNN Enterprise famous.
The automakers attributed the declines to produce chain points and the chip scarcity, based on the report.
Tesla reported document quarterly worldwide automobile deliveries however mentioned it too had been affected by these points, The New York Occasions reported.
“We want to thank our prospects for his or her persistence as we work by way of international provide chain and logistics challenges,” the automaker mentioned in a press launch.
The scarcity of pc chips wanted to construct automobiles has been affecting the trade for greater than a 12 months, based on CNN Enterprise. When auto gross sales plunged within the early weeks of the pandemic, automakers trimmed orders for chips. Later, when auto gross sales rebounded, the chips had gone to different prospects.
These provide disruptions have been affecting the used automobile enterprise too. Used automobile dealership chain CarMax mentioned its stock was 30% decrease than it anticipated and down 15% 12 months over 12 months, reducing into automobile availability however not but impacting the corporate’s gross sales.
Learn extra: CarMax Struggles to Construct Stock as Automobile Scarcity Continues
CarMax President and CEO Invoice Nash informed analysts on a convention name the problem isn’t CarMax’s skill to accumulate vehicles however somewhat continued fallout from the impacts of the pandemic. The corporate usually builds up its stock early within the 12 months, but it surely wasn’t in a position to do this due to disrupted new automobile manufacturing and document gross sales within the spring.
“It actually has been a headwind,” Nash mentioned.