It’s easier to count on fingers the industries that have not been affected by the PC Chip Shortage globally. However, Q3’s car chip shortage is no less than a catastrophe for the car industry.
The shortage has compelled the industry to stop the production lines and lay off workers. As if that was not enough, the declined car sales have added to the disaster.
The year which was expected to be a growth sales period for cars, turned into an overall decline after the industry saw a 14% decrease last year.
In April, the sales for the new cars that reached $18.5 million fell to 12.2 million until September’s end. As per the analyst estimates, by the end of December, the industry will reach 15.5 million sales; however, it is still lower than what the industry had achieved last year, making a decline.
Even though the Q3′ car chip shortage has declined the sales across the board, some suffered mild consequences. Here is the list of the losers and winners from the last quarter.
- General motors
Despite being one of the top automakers, General Motors became the target of the decreased sales with a 33% decline in car sales year-over-year. The problem, in this case, is not limited to demand only as the consumers are willing to buy newer and efficient vehicles. It is the carmakers that have become incapable of manufacturing vehicles due to Q3’s car chip shortage. General Motors’ woes are dazzling with a 40% decrease in sales compared to the 3rd quarter of 2019. In September, the giant automaker shut down its plants. However, the SUVs and Pick up trucks are back in production.
Ford got the second rank for the decreased sales in the 3rd quarter of the year. However, the company has paved its way to grow after beating the analyst sales expectations for September and leading the market. For September, analysts estimated that if the company could get its hands on the chip, it could embed it in the already manufactured vehicles and put them on the market for sale. And that’s what happened. Consumers immediately booked the vehicles when they arrived at the market. On the other hand, Ford’s F series despite being a profit-making car for the company saw a huge market crash for five months in a row.
Even though Stellantis did not experience a sharp market plunge like its rivals, the company lost one-fifth of the sales in the third quarter. The impact was mainly absorbed when the company introduced its Jeep models right in time at showrooms. However, the jeep models still saw an 11% plunge in sales. While the Grand Cherokee saw a 45% increase in sales which was later reduced due to the shut down of the production lines.
Toyota enjoyed a 1.4% sales increase in the third quarter after it sold almost 556,000 vehicles. The Japanese automaker marked the second quarter in a row it has beaten its competitor and put itself on the top in the US car market. However, in September, the carmaker saw a plunge of 22% sales decline.
Tesla won the game with its 241,300 electric vehicles sales, more than the analysts had expected. However, the company had a mild impact on the Q3′ car chip shortage. Its model 3 and model Y compensated for the loss with 95% of sales overall. From the previous quarter, the company saw a 20% rise in sales.
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