August U.S. auto revenue: Toyota, Ford, Honda, Hyundai, Kia, Subaru slip as chip woes spread

The intense microchip lack and other offer-chain constraints that have plagued automakers for months have now ensnarled Toyota, Honda, Hyundai and Kia, whilst dealing another unattractive blow to Ford Motor Co.

Total, U.S. mild-vehicle profits tumbled 17 percent previous month, Morgan Stanley analyst Adam Jonas mentioned Thursday. Sales were predicted to fall 4 to 18 per cent in August, primarily based on estimates from Cox Automotive, TrueCar, J.D. Electric power and LMC Automotive.

Though record lower stock stages undermined August revenue, Jonas explained the field could also be facing a strike by purchasers, citing ‘nosebleed’ pricing earlier mentioned MSRP. Simply because of file minimal stockpiles, numerous new-automobile sales are issue to market place changes by dealers, driving rates larger. (See chart down below.)

“Maybe the shopper has decided to ‘wait it out’ right until price ranges slide?,” Jonas wondered in a new report.

The seasonally adjusted, annualized rate of gross sales for August dropped to 13.09 million, Motor Intelligence said, at the small end of the vary of forecasts — 13.1 million to 14.4 million. That is the weakest SAAR reading through of the calendar year and the least expensive due to the fact June 2020’s 13.23 million amount, early in the COVID-19 pandemic.

The SAAR has also declined steadily since hitting a 2021 peak of 18.5 million in April.

August U.S. mild-car or truck deliveries dropped 2 p.c at Toyota Motor Corp., with quantity down 2.4 percent at the Toyota division but edging up .5 p.c at Lexus.

Some of the Toyota brand’s largest sellers posted notable declines, with Highlander quantity off 11 per cent and RAV4 deliveries down 24 percent. Camry deliveries slipped 3.1 % and Tacoma dropped 4.5 percent.

Toyota, which strategies more output cuts in coming months, stated it ended August with 132,934 cars and gentle trucks, or an 18-working day supply. Toyota division stockpiles totaled 106,985 at thirty day period-finish, or a 17-day provide, while Lexus had a 24-day supply, or 25,949 gentle automobiles. True supplier inventory is significantly lower since of inventory at ports or in transit, Toyota reported.

Ford Motor Co.’s August sales tumbled 33 p.c, with quantity dropping 33 % at the Ford division and 44 per cent at Lincoln. Ford’s largest sellers all posted double-digit declines in volume: F-series, down 23 per cent Ranger off 68 per cent Explorer, down 57 percent Escape, off 33 percent and Transit, down 36 per cent. 

The business explained August inventory rose 34 % compared to July and that it has 214,500 light-weight autos in gross inventory.

Ford, signaling demand remains sturdy as production carries on to recuperate, explained it gained 41,000 new retail orders last thirty day period, a 4-fold increase over August 2020. The company has also supplied up to $1,000 in bonuses to purchasers who order a vehicle to be delivered at a later date.

Quantity was off 16 p.c at Honda Motor Co., with profits down 18 percent at the Honda division but up 4.7 percent at Acura. It was the firm’s very first decrease since sales dropped 11 per cent in February. CR-V deliveries fell 19 per cent and Accord volume skidded 24 p.c final month.

Right after a extend of regular document gross sales, August deliveries fell 3.7 p.c at Hyundai and 5.3 % at Kia, the providers said Wednesday.

Revenue of some of the two companies’ most common gentle vehicles — the Hyundai Palisade, Tucson and Santa Fe, as very well as the Kia Telluride, Seltos and Sorento — dropped very last month.

Kia claimed it sold 74 percent of offered inventory very last month and Hyundai finished August with 39,357 new autos in U.S. stock, a drop of 15 percent from 46,113 in July.