The chip shortage strikes again as Ford Motors faced a significant drop in sales for June due to limited stock.
Ford saw a significant increase in sales early in the second quarter as the COVID-19 pandemic came to a close with a 9.6% increase from the previous year. This was largely attributed to the fact that people around the world were taking shelter within their homes during the height of the pandemic. While this increase in sales seems like good news for the company, Ford is quickly losing its inventory as the company expected to lose half of its manufacturing throughout the second quarter due to the chip shortage. This limited production has resulted in a drop in sales of 26.9% for June and is only expected to get worse as the company continues to cut down on production for July.
GM and other automakers are facing the same issues with increasing demand for vehicles, but the companies are unable to meet the demand as they continue to limit their manufacturing across the globe.
Automotive makers are scrambling to find solutions for the chip shortage as demand for new vehicles has reached extremely high levels, however, with no clear solution in sight automotive manufacturing is expected to continuously drop for the foreseeable future.
Source: CNBC
