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US car sales slump due to a shortage of computer chips

His dealership was closed for repairs last month. It is located approximately 115 miles (185 km) southeast of Boise.

In September, U.S. sales of new vehicles fell by 26% due to chip shortages and other parts-supply disruptions that reduced the dealer inventory and increased prices to record levels. Many consumers were frustrated and forced to sit on the sidelines as a result of a shortage that has hampered the industry since last year.

Edmunds.com reports that automakers sold just above 1 million vehicles in September, which includes estimates for Ford and other companies that have not reported numbers on Friday. Edmunds stated that September was the month with the lowest number of sales.

The third quarter sales saw a decrease of 13% compared to the previous year's period.

On Friday, automakers reported very poor results. General Motors reports quarterly sales, but its deliveries fell by nearly 33% between July and September last year. Stellantis, previously Fiat Chrysler, saw its quarterly sales drop 19% while Nissan sales fell 10%.

Honda's U.S. Sales fell nearly 25% last month and were down 11% for quarter. Toyota sales fell 22% in September, but were up slightly by 1% in the third quarter. Hyundai reported sales down 2% in September, but an increase of 4% in the third quarter. Volkswagen sales for the third quarter were lower by 8%.

"September results show that there simply are not enough vehicles to meet consumer demand," stated Thomas King, president and CEO of J.D. Data Analytics. Power

Last month's record sales price for a new vehicle was $42,802, breaking the August record of $41,528. Power stated. The average U.S. home price has risen nearly 19% since last year, when it was above $36,000 for its first time, J.D. Power stated. Inflation in the United States has been driven up by increases in auto prices.

General Motors, which was hit hard last quarter by temporary plant closings, expressed some optimism. Steve Carlisle is the president of GM North America. He stated that the shortage in computer chips is improving.

He stated that a steady supply of vehicles will be available to dealers in the fourth quarter. "We are restarting production at key crossover- and car plants and look forward to a stable operating environment through fall."

After the outbreak of the pandemic in 2011, many states issued stay at-home orders, the shortage caused by the insanely high prices of new and used cars. The prices plummeted and automakers shut down their factories for eight weeks. As many consumers remained cooped up, they wanted to be able to commute to work and take long road trips without having to come into contact with other people.

Computer chip manufacturers shifted production to meet wild demand for tablets, gaming devices, and laptops. This led to a shortage in automotive-grade chips. It is possible that this problem will not be resolved completely until next year.

Despite the record-breaking profits that dealers large and small report, Paulos is worried that those days may be gone. Paulos is making money and paying the bills with used car sales. People also keep their cars longer. He hopes the new auto shortage will end and that GM is bringing back more factories.

Paulos states that there won't be any inventory for people to see. "If we don’t have enough supply for dealers, our record profits will turn into record losses," Paulos says. Without new flow, it's difficult to sustain oneself."

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