The Chips Are Down for Automakers – And So Are Car Sales
Automakers were on track to sell a record 18 million new cars and trucks in 2021 until a global computer chip shortage gummed up assembly lines.
Automakers were on track to sell a record 18 million new cars and trucks in 2021 until a global computer chip shortage gummed up assembly lines.
U.S. auto sales are expected to nose-dive in September, driving purchases of new vehicles down in the third quarter.
The cost of the intractable semiconductor shortage has ballooned by more than 90%, pushing the total hit to $210 billion.
President Joe Biden announced an agreement that aims to push the US auto industry to sell more electric vehicles.
Automakers have sought to quell those concerns by developing EVs that go farther per charge and fill up faster.
Automakers are reporting strong vehicle sales buoyed by consumer demand in the first quarter as fleet sales struggled.
This will dampen consumer sentiment in an already weak demand environment.
APAC automakers may recover from 2H20 at a slow pace as 2Q20 retail sales were than the the forecast of Fitch Ratings says.