Incomplete-Car Inventory Should Be Eliminated
Ford, GM say they’ll ship unfinished vehicles by year’s end as supply issue eases.
Tens of thousands of unfinished GM and Ford cars would move to dealers after the installation of long-awaited parts.
IMAGE: Getty Images/AvigatorPhotographer
Ford and General Motors say they’ll eliminate a backlog of unfinished vehicles by the end of the year as the flow of microchip parts loosens somewhat, Automotive News reported.
The carmakers have been holding on to tens of thousands of vehicles missing some hard-to-get parts. Ford is further behind on that front than GM.
They plan to install the missing parts and ship the vehicles to dealers this fall.
The news buoyed GM’s financial results in the third quarter, when its profit rose 37% year-over-year to $3.3 billion.
Ford’s quarter went in the opposite direction. It lost $827 million as costs for parts and materials increased and it and partner Volkswagen Group announced plans to end self-driving technology business Argo AI. Ford will instead focus on driver-assistance technology.
Microchip supply constraints that resulted from the Covid pandemic have stymied carmakers around the world, leading to inventory shortages.
Originally posted on Auto Dealer Today
More Industry
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →