Detroit (AP) — In the normal month before the pandemic, a Chevrolet dealer in Conpaulos, Jerome, Idaho, sold about 40 new cars. There were only 6 people in September. Currently he has no new inventory and all the cars, trucks or SUVs ordered are on sale.
What happened at a dealership about 115 miles (185 km) southeast of Boise last month was repeated nationwide as factory closures squeezed new car shipments in the United States due to a worsening global shortage of computer chips.
Forecasts are for September sales to decline about 25% from last year, as chip shortages and other parts supply disruptions have reduced dealer lot selection and prices have risen to record levels again. It has sent many frustrated consumers to the bystanders to wait for the shortages that have plagued the industry since the end of last year.
JD Power predicts that US automakers will sell more than one million cars in September, with an annual sales rate of 12.2 million. This is 4 million lower than last year and 4.9 million lower than September 2019.
JD Power expects third-quarter sales to decline by just over 13% year-over-year.
The carmaker on Friday reported pretty poor numbers. General Motors, which reports only quarterly sales, said its deliveries were nearly 33% off from July to September last year. Nissan’s sales for the quarter were down 10%.
Honda’s US sales fell nearly 25% last month and fell 11% this quarter. Toyota’s September sales were down 22%, but increased by just over 1% in the third quarter.
“September results show that we don’t have enough vehicles to meet consumer demand,” said Tomasking, president of data and analytics at JD Power.
According to JD Power, the average selling price of new cars reached a record high of $ 42,802 last month, surpassing the record high of $ 41,528 set in August. According to JD Power, the average price in the United States has risen nearly 19% from a year before it first broke above $ 36,000. Rising car prices have helped boost inflation in the United States.
General Motors has been hit hard by the temporary factory closure in the previous quarter, but has shown some optimism. Steve Carlisle, president of GM North America, said the shortage of computer chips has improved.
“For the fourth quarter, the stable flow of vehicles owned at the plant will continue to be released to dealers, major crossovers and production at the car plant will resume, and we look forward to a more stable driving environment through the fall. He said in a statement.
The shortage of both new and used cars and the high madness began with the eruption of a pandemic last year when many states issued a stay-at-home order. Prices plummeted and automakers closed their factories for eight weeks. The resulting reduction in supply is similar to how many supportive consumers wanted a new or used car to commute to work or travel by car without contact with others. It happened to.
Although car factories were closed in April and May last year, computer chip makers have shifted production to meet the strong demand for laptops, game consoles and tablets. As a result, there is a shortage of car-grade chips that may not be fully resolved until next year.
Large and small dealers are reporting record profits due to the high prices, but Paulos fears that the time is over. Not only does he pay bills and make money by selling used cars, but he also services people to keep their cars longer. He hopes the new car shortage has bottomed out and says GM seems to bring more factories back online.
“We don’t have the stock to show people here,” says Paulos. “I’m worried that without supply to dealers, record profits could turn into record losses. Without new trends, it’s hard to maintain yourself.”
US car sales stagnated due to lack of computer chips in cars | WGN Radio 720
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