Electric cars

US Auto Sales Set to Slow Sharply on New TO GM, Ford Stock Production Hits | Investor’s Business Daily

US Auto Sales Set to Slow Sharply on New TO GM, Ford Stock Production Hits |  Investor's Business Daily

Ford engine (F) and General Motors (GM) report first-quarter U.S. auto sales. But Ford and GM shares fell as parts shortages hit operations again.




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Toyota engine (MT), Stellantide (STLA) and Honda engine (HMC) will also release U.S. auto sales results for the first quarter amid headwinds from growing industry supply. Separately, You’re here (TSLA) will report first quarter deliveries.

GM and Ford are working on parts shortages, the Detroit News reported Thursday. Both will halt production at select Michigan factories next week. Stellantis, formerly Fiat Chrysler, halted production this week just across the river at its assembly plant in Windsor, Ontario, Canada. Only Ford linked the production hit to the chip shortage, while GM and Stellantis did not specify which components were in short supply.


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U.S. auto sales will slow sharply

Industry-wide, the annualized pace of new car sales will hit 12.7 million vehicles in March, JD Power and LMC Automotive estimated. That would be down over a million units from February and down over 5 million from March 2021.

The drop in sales is mainly due to tight supplies due to shortages of chips and parts fueled by the pandemic. Demand remains robust, analysts said.

Today, the Russian-Ukrainian war is raising new concerns. The combination of headwinds could mean inventory problems will persist well into 2022, said Edmunds analyst Jessica Caldwell.

In a context of low inventories, the prices of new vehicles remain high.

Here’s how automakers should fare in the first quarter of 2022, according to Cox Automotive.

Toyota Auto Sales

Q1 2022 Sales Estimate: 510,348 vehicles, down 15% compared to Q1 2021 and up 3% compared to Q1 2020.

Results: Come back Friday. Toyota Motor stock edged up 0.3% stock market today.

General Engines

Q1 2022 Sales Estimate: 485,330, down 24% vs. Q1 2021 and down 21% vs. Q1 2020.

Results: Come back Friday.

GM stock fell 2.3% on Thursday.

Ford engine

Q1 2022 Sales Estimate: 431,123, down 17% vs. Q1 2021 and down 16% vs. Q1 2020.

Results: Come back later.

Ford stock lost 1.5%.

Stellantide

Q1 2022 Sales Estimate: 411,174, down 13% vs Q1 2021 and down 8% vs Q1 2020.

Results: Come back Friday.

Stellantis shares fell 2.7%.

Honda Automotive Auto Sales

Q1 2022 Sales Estimate: 252,205, down 27% vs. Q1 2021 and down 16% vs. Q1 2020.

Results: Come back Friday.

Honda shares fell 0.7%

Ford’s F-150 Lightning on track

Despite supply issues plaguing auto inventory as a whole, Ford’s F-150 Lightning remains on track. Deliveries are expected to begin in the spring, according to a company spokesperson tweet on March 18.

Ford’s Lightning EV will mark perhaps the biggest vehicle launch of the year. It is the first all-electric version of Ford and America’s best-selling vehicle, the F-150 pickup truck.

In January, strong demand for the Lightning EV briefly boosted Ford stock to a market capitalization above $100 billion. Ford and other automakers are phasing out gasoline and diesel vehicles for electric cars.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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