Detroit-Ford Motor Company’s new U.S. sales fell 33.1% year-on-year on Thursday due to a continuing global shortage of semiconductor chips that are hitting the automotive industry.
Detroit carmaker sales ended the disastrous month of US car sales in August. And it plummeted to an adjusted sales rate of 13.09 million units. According to motor intelligence, a car data company, this is the worst pace since June 2020, down from this year’s peak of 18.5 million in April.
Analysts predict August sales will be between 13.1 million and 14.4 million units, with JD Power and LMC Automotive forecasting a 13.7% decrease in overall sales compared to August 2020. ..
The sales pace for a particular month measures the number of cars the industry sells that year if you sell the same amount each month. This is a key barometer of industry health and demand.
August has historically been one of the highest car sales months of the year, but chip shortages have caused vehicle inventory levels to plummet and new car and truck prices to skyrocket.
The Ford logo appears on a sign outside the Chicago Assembly Plant in Chicago, Illinois, on February 3, 2021.
According to Thomas King, president of JD Power’s data and analytics division, dealers have only about 942,000 units in stock for retail sale, compared to about 3 million units before the coronavirus pandemic two years ago. ..
“Inventory arrives at dealers daily, but it simply replaces the vehicles being sold, preventing dealers from increasing inventory to the level needed to support a higher sales pace,” King said. Said.
Most major US automakers have switched to quarterly sales reports, but some other automakers that still report monthly sales, such as Honda and Subaru, also lost double digits in August. I reported. Toyota, Volvo, Hyundai, and Kia reported a slight increase or loss in sales compared to a year ago.
Sales of almost all vehicles in the Ford lineup declined last month compared to last year, with sales from some new vehicles such as the Bronco SUV increasing. Most notably, Ford’s best-selling F-series pickups fell by 22.5%.
Ford’s total sales last month exceeded 124,176 units. From August 2020, truck sales fell by nearly 30%, SUVs fell by 25.3%, and car sales fell by 86%.
Ford’s silver lining last month saw retail sales increase 6.5% compared to July, but 33% from August 2020, according to Andrew Flick, vice president of sales for Ford in the United States and Canada. It was a decrease.
Ford’s sale will take place the day after it confirms that automakers are again reducing the production of F-150 pickup trucks and other high-profit vehicles due to the ongoing global shortage of semiconductor chips
The cause of the shortage dates back to early last year when Covid caused a rolling shutdown of the vehicle assembly plant. When the facility was closed, wafer and chip suppliers diverted parts to other sectors that were not expected to be damaged by home orders, such as consumer electronics.
According to consulting firm AlixPartners, the issue is expected to generate $ 110 billion in revenue for the global automotive industry in 2021.
Ford’s U.S. sales fall 33% as chip shortage devastates the auto industry