In the first quarter, the U.S. auto sales rose more than 11% as strong March sales far exceeded the previous year when the Coronavirus pandemic began.
Automakers sold more than 3.9 million cars during the first three months of the year, with several major companies reporting March sales that were almost double from the same month a year earlier according to figures compiled by Edmunds.com.
GET FOX BUSINESS ON THE GO BY CLICKING HERE Toyota sales were increased in March by 93% while Honda sales rose to 87%.
Nissan posted a 78% gain, while Hyundai-Kia reported a 46% increase, while Fiat Chrysler was up 45% and Ford a 26% increase. Kevin Roberts, director of industry insights for Cargurus.com, said individual sales to vehicle buyers were stronger, but overall sales remain lower than pre-pandemic levels due to reduced fleet purchases. When the pandemic began, he said, buyers pulled back and retail sales fell for about a month.
I would say the automobiles of today have outperformed the greater economy from that point on, he said.
The combination of a$ 1.9 trillion government stimulus program and people looking for transportation to keep themselves isolated from others due to the virus should keep sales strong, he said.
FORD TO UPDATED GLOBAL IMPACT ON FINE CHIP SHORTAGE NEXT MONTH.
But a shortage of computer chips is forcing automakers to cut production and that could affect sales later in the year.
Plus, dealers' supplies are tight and a lack of selection could delay purchases, Roberts said.
Although many others might want to drive quickly to buy rather than come in contact with others while traveling, he said. CLICK HERE TO READ MORE ON FOX BUSINESS. Industry analysts and executives say the chip shortage is likely to continue until at least the third quarter of this year.