SHOPSMART AUTOS – CUSTOMER INFORMATION – MAY 7, 2021
The Detroit automaker reported pretax income for the first quarter at $4.4 billion. During the quarter, the company said it was able to divert precious computer chips to higher-profit models such as full-size pickup trucks and SUVs, and that brought the higher income. In the U.S., GM’s most profitable market, sales rose 4% from January through March compared with a year ago. However, the first-quarter sales of 639,406 vehicles was the second-lowest level in the first quarter since 2015, and the figures were 4% below the same period in 2019, according to Cox automotive. Still, demand was strong and inventories were low, allowing GM to reduce discounts and raise prices. GM’s average sales price hit a record of $44,685, up 9% from a year ago, according to Cox figures. Last week crosstown rival Ford Motor Co. said the worsening chip shortage would cut its production in half during the current quarter. he situation will improve in the second half, but Ford still will see production fall 10% over original plans. That means Ford won’t be able to make up for any lost production this year. The company expects to lose factory output of 1.1 million vehicles for the year, up from an earlier estimate of 200,000 to 400,000. Nearly all automakers are struggling with the chip shortage, caused by semiconductor makers switching their factories to more profitable consumer-electronics processors when auto plants closed due to the coronavirus last year. The auto factories came back faster than expected, but the chip makers didn’t quickly switch their factories back to automotive-grade chips. Then a March fire wiped out much of the chip production at a factory in Japan that makes chips for vehicles. Barra said that after the chip shortage ends, GM will not return to a business model with huge dealer inventories. Rather it will go to more of an order and fast-delivery model, which would save on costs and keep the company from being caught with too many vehicles in a downturn. “We won’t over-build inventory,” she said. Some dealers, she said, have sent her pictures of empty lots, so the inventory has to grow a little higher than it is today. Also Wednesday, Barra said she expects there will be personal ownership of autonomous vehicles, and that GM’s Cruise autonomous vehicle subsidiary is making progress toward starting a driverless ride-hailing service in San Francisco. “It’s not years out,” she said. Cruise also expects to have up to 4,000 self-driving vehicles operating in Dubai by 2030, she said.Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Optima, 2020 Mercedes Benz, 2020 Nissan Versa, 2020 Subaru WRX STI, Audi SUV, BMW, Brandon K. Hardison, Chevrolet Car, Chevrolet Sonic, Dodge charger, electric vehicles, honda, Honda Pilot, Hyundai SUV, Mercedes Benz, Nissan Rogue, SUV, upcoming car, Volkswagen, Volkswagen Tiguan SEL Premium R-Line, Volvo Car
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