Business

Ford’s US sales continued to recover due to chip shortages in October.

Bronco SUVs are built at Ford’s Michigan assembly plant on June 14, 2021.

Michael Wayland | CNBC

DETROIT. Ford Motor vehicle sales in the United States have shown positive signs of recovery from an ongoing semiconductor chip shortage that has wreaked havoc on the global auto industry this year.

On Wednesday, the Detroit automaker reported sales of 175,918 new vehicles in October, down 4% from a year ago, but a much smaller loss than in previous months. Those sales represent Ford’s best sales volumes since April and the first time since May, when the company did not report double-digit monthly losses compared to 2020.

“During June this year, Ford retail sales grew 10.7%. With limited inventory and record second-quarter turnover rates, we worked closely with our dealers to collect retail orders that were up 16 times from last year, ”he said. said Andrew Frick, Ford’s vice president of US and Canadian sales.

On another positive note, Ford said that car inventories, which were at an all-time low due to chip shortages, increased 7,000 units from a month earlier to 243,000 cars and trucks.

Ford’s sales outpaced the industry last month, according to Cox Automotive. An auto research firm on Wednesday calculated that new car sales in the United States fell about 21% from October 2020. This is better than Cox’s original forecast of a 30% decline.

“The market is still very low in inventories and thus low incentives, but the worst is probably over,” Cox said in a statement.

Ford is one of the few automakers to report monthly vehicle sales. Others, such as General Motors and Stellantis, formerly Fiat Chrysler, report only quarterly sales.

Ford’s October sales come a week after the company nearly doubled Wall Street’s expectations for third-quarter profit and raised its full-year adjusted profit forecast to $ 10.5-11.5 billion from $ 9-10 billion.

However, Ford is not yet entirely clear about its semiconductor chip shipments. Chief Financial Officer John Lawler said last week that the company expects chip shortages to continue into next year and perhaps to a much lesser extent in 2023.

Lawler said Ford expects auto wholesale sales to increase 10% in 2022 over this year as semiconductor shortages continue to affect the business.


Source link

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button