Auto industry is hurting for supply, not demand
Auto industry is hurting for supply, not demand
Hannah Lutz
Charlotte Smith, Ford Motor Co.
Gains by Japanese and European auto makers significantly outpaced those of the Detroit 3 in the first quarter.
The U.S. auto industry has roared back from the pandemic, notching its strongest March sales in more than 20 years. But the widening microchip shortage now threatens to pinch supplies of many highly profitable and popular vehicles at a time when consumer demand is surging.
First-quarter retail sales climbed 26 percent, according to J.D. Power, and total light-vehicle sales reported rose 12 percent from the year- earlier period that included the dismal first few weeks of the pandemic. Fleet deliveries are well below normal so far this year but could begin rising as the travel business rebounds in the months ahead.
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