Auto makers fresh off heady sales and profits in the initial quarter are preparing for a rough ride ahead, as the global computer-chip shortage clouds an otherwise mature environment for car sales.General Motors Co. on Wednesday reported a near-record operating profit for the January-March period while competitor Ford Motor Co. a week earlier posted its best bottom line in years. Jeep-maker Stellantis NV stated that sales increased 14% for the quarter and confirmed earlier full-year guidance of 5.5% to 7.5% adjusted operating margins. It reports half-year earnings results in August.But every company stated that the shortage of semiconductors that has pushed production cuts across car factories world-wide since January will grasp production and inventories even more heading into the summer, just as American car buyers are turning out to dealerships in herds.That means car shoppers in the coming months are likely to find slimmer options and lesser deals, from new and used dealerships to the rental-car lot.
Car Companies’ Profits Have Outrun the Chip Shortage-but not for long
Published by
November 28, 2024
(GMT+2)
WHAT TO READ NEXT
No items found.
STOCK ANALYSIS
MARKET OVERVIEW
SIMILAR NEWS
Ready to get started?
Start trading with the full package, from state of the art platform to free tool and favorable transaction fees.
All investments involve risks, including the possible loss of capital.
www.mexem.com is a website owned and operated by MEXEM Ltd. MEXEM Ltd is a European broker regulated by CySEC, license No. 325/17.
Read our Forms & Disclosures.
Any advertisement or communication concerning the distribution of derivatives falling within the scope of the Regulation of the FSMA of 26 May 2016 governing the distribution of certain derivative financial instruments to retail clients is not addressed to the Belgian public.