Incomplete-Car Inventory Should Be Eliminated
Ford, GM say they’ll ship unfinished vehicles by year’s end as supply issue eases.
Tens of thousands of unfinished GM and Ford cars would move to dealers after the installation of long-awaited parts.
IMAGE: Getty Images/AvigatorPhotographer
Ford and General Motors say they’ll eliminate a backlog of unfinished vehicles by the end of the year as the flow of microchip parts loosens somewhat, Automotive News reported.
The carmakers have been holding on to tens of thousands of vehicles missing some hard-to-get parts. Ford is further behind on that front than GM.
They plan to install the missing parts and ship the vehicles to dealers this fall.
The news buoyed GM’s financial results in the third quarter, when its profit rose 37% year-over-year to $3.3 billion.
Ford’s quarter went in the opposite direction. It lost $827 million as costs for parts and materials increased and it and partner Volkswagen Group announced plans to end self-driving technology business Argo AI. Ford will instead focus on driver-assistance technology.
Microchip supply constraints that resulted from the Covid pandemic have stymied carmakers around the world, leading to inventory shortages.
Originally posted on Auto Dealer Today
More Showroom
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →
European EV Sales Skyrocket
The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →