Ford Suffers Significant Sales Slump, GM Announces Further Production Cuts Amid Worsening Chip Shortage

Ford’s auto sales slumped significantly last month, while rival GM is planning additional production cuts, as the ongoing global semiconductor shortage continues to hammer automakers.

According to a company statement on Thursday, Ford’s US auto sales fell 33.1% in August compared to the same month a year earlier, causing its adjusted selling rate to plummet to 13.09 million cars. The latest figures mark the worst pace for the automaker since June 2020, and a significant decline from the sales rate of 18.5 million cars noted in April of this year.

In fact, Ford’s August sales were so poor, that they failed to meet projections put out by J.D. Power and LMC Automotive, which called for an overall sales decline of 13.7%. Sales for nearly every Ford model were down substantially compared to August 2020, most notably sales of the F-series pickup truck, which slumped 22.5%.

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

The month of August tends to be a time of strong sales, but the global chip shortage has caused dealerships’ inventory levels to deteriorate to record lows, and subsequent prices of new cars to soar. The supply of vehicles will likely not abate anytime soon, as Ford’s rival, GM, is planning to once again curtail production across its major plants, including ones in Canada, the US, and Mexico. The decision to extend downtimes follows the automaker’s projections last month, which forecast production will fall by about 100,000 cars in North America during the second half of 2021.


Information for this briefing was found via Ford and GM. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. Its time to have our own chip manufacturing plants here in North America. The shortage could be a conspiracy from China to destroy our auto sector

Video Articles

The Red Cloud Fall Mining Showcase 2026 | Day 1

Can an Old Irish Mine Recover the Silver It Left Behind? | Julian Vickers – Northmin Corporation

Is Gold at $4,000 a Buy Zone or a Breakdown? | David Morgan

Recommended

First Majestic Lifts Q3 Revenue 38% to US$394.1 Million on Higher Silver Prices

Meghan Markle’s Half-Brother Submitted Evidence Against Their Father, But Now Faces Philippine Police Scrutiny

Related News

Unifor Union Members Overwhelmingly Support Strike Mandates in Detroit Three Negotiations

Members of Unifor, Canada’s largest union in the private sector, employed at Ford Motor Company...

Monday, August 28, 2023, 08:01:56 AM

UPDATED: SEC Looking into Nikola Claims; Will GM Pull Out of Nikola Deal?

After the market, Bloomberg reported the SEC is assessing the merits of the accusations made by...

Monday, September 14, 2020, 06:04:59 PM

Lithium Americas: Thacker Pass Gets A Credibility Boost With GM Investment

On Tuesday, Lithium Americas Corp. (TSX: LAC) made two significant and interconnected announcements related to...

Sunday, February 5, 2023, 01:49:00 PM

Will GM Meet Its $1 Billion Revenue Target For Cruise By 2025?

General Motors (NYSE: GM) recently released expectations for Cruise, the company’s driverless ride-hail unit, to...

Friday, December 9, 2022, 08:30:00 AM

Apple CarPlay “Will Take Over All Of The Screens” Says Lawsuit

The United States government has filed a lawsuit against Apple (NASDAQ: AAPL), alleging that the...

Friday, March 22, 2024, 10:13:39 AM