Published on 6 Apr 2022 on Zacks via Yahoo Finance
Auto Roundup: Updates From General Motors (GM) & Ford (F) at the Forefront
Major auto giants reported first-quarter 2022 vehicle sales numbers last week. Most of them suffered a double-digit decline in sales volumes. Overall, new vehicle sales declined more than 12% year over year for the January-March period due to escalating supply chain issues despite robust consumer demand. Sales plunged even more drastically in March as limited vehicle supply and tight inventories kept a lid on volumes amid compounded chip concerns over the Russia-Ukraine crisis. Per Cox Automotive, the seasonally adjusted annual rate for March declined to 13.09 million units from 14.1 million in February and 17.6 million in March 2021. More on this here: Do Dismal Q1 Sales Hint at Rough 2022 for U.S. Auto Market?
Auto giants Ford F and General Motors GM issued a recall of some of their models last week on issues related to damaged parts or certain features that compromise the safety of other drivers on the roads. The companies were also prompted to temporarily suspend operations in some of their factories amid a shortage of chips.
Automotive suppliers Magna International MGA and Meritor MTOR made news with the expansion of operations in Ontario and deal with Extreme Trailers, respectively. Auto retailer Penske Automotive PAG bolstered its position in the United Kingdom with the acquisition of three BMW MINI dealerships.