Day: October 5, 2021

Auto sales nosedive in Q3 as inventory dries, supply shortages worsen

U.S. car sales have dipped to levels not seen since the Great Recession as ongoing supply shortages hamper automotive production worldwide, strangling inventories while dealers attempt to salvage whatever revenue they can by increasing margins on the few vehicles they’re able to stock. 

Even a careful perusal of Q3 and September sales figures (Automotive News subscription required) reveals virtually no good news; even Toyota’s slight improvement is tenuous at best. While many raw materials and basic components have been in short supply since the pandemic crippled worldwide logistics, the primary culprit in the ongoing automotive production slowdown is computer chips. While some have been quick to point fingers at electric vehicles and other high-tech offerings, the shortage hasn’t really discriminated.

As of the end of September, the industry is still up more than 13% compared to a year ago, but there’s a catch: Sales through Q3 of 2020

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Volvo Cars hopes to raise $2.9 billion in its stock IPO

STOCKHOLM/LONDON — Geely-owned Volvo Cars plans to raise 25 billion Swedish crowns ($2.9 billion) through an initial public offering (IPO), the Swedish carmaker said on Monday of what would be one of Europe’s biggest listings this year.

Volvo said it will list on the Nasdaq Stockholm stock exchange this year and that Chinese owner Geely Holding would remain its biggest shareholder.

In 2018, Volvo Cars and Geely, which also owns an 8.2% stake in Sweden’s Volvo Trucks, postponed plans to float shares in the Swedish carmaker, citing trade tensions and a downturn in automotive stocks.

“Volvo Cars believes that its unique structure and focused strategy makes it one of the fastest transformers in the global automotive industry, with mid-decade ambitions dedicated to electrification, sustainability and digitization,” the Swedish company said in a statement.

Like a number of other carmakers, Volvo has committed to shifting its entire car range to fully-electric

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One ETF to Watch as Tesla Makes Record Deliveries

Electric car maker Tesla delivered a record number of vehicles recently, despite staring down a semiconductor shortage that’s racked the automotive industry.

“On Saturday, Elon Musk’s electric carmaker said it delivered 241,300 cars worldwide in the latest quarter,” a Motley Fool article reported. “It’s a record for the company that not only blew past analyst expectations, but also suggested that Tesla’s suffered little impact from the supply chain nightmares that have stalled rivals. For all his annoying tweets, maybe Musk should let the numbers do the talking.”

As mentioned, Tesla is delivering these numbers despite a semiconductor shortage that’s hit the automotive industry with a gut punch. According to the article, AlixPartners forecasted that automotive manufacturers will produce 7.7 million fewer vehicles in 2021 as a result of the shortage, which is almost double their original number.

“Taking a step back, with the chip shortage a major overhang on the

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