08 Jul 2022 -

Prices up, sales down: automotive supply chain woes passed on to consumer

According to the LA Times, General Motors reported a 15% sales drop and was forced to build 95,000 vehicles without one part or another due to shortages of semiconductors and other materials.

Toyota sales were also down 19% for the first half of the year and fell 18% in June. Jack Hollis, head of Toyota sales in North America, said the chip shortage didn’t improve as much as the company expected in the first half of the year, and he doesn’t see it getting much better until next summer.

“Every microchip producer is producing at maximum speed because they have maximum demand,” Hollis told The LA Times. “There is no catching up going on. It’s actually falling behind.”

Other automotive companies reported similar stories:

  • Stellantis, formerly Fiat Chrysler, posted a 16% sales decline.
  • Honda’s second-quarter sales fell by more than half, with the company blaming “severe” supply chain issues.
  • Nissan sales dropped nearly 39% for the quarter, and Hyundai posted a 23% sales dip.

Despite the $5-a-gallon gasoline, high inflation and rising interest rates, demand continues to outstrip supply, with prices shooting up “to record levels” and knocking many consumers out of the new-vehicle market, reported the LA Times.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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