Detroit’s GM, Japan’s Nissan beat quarterly sales estimate amid chip shortage

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Detroit’s GM, Japan’s Nissan beat quarterly sales estimate amid chip shortage

On Thursday, the United States’ No. 1 traditional automaker General Motors alongside Japan’s Nissan Motor Co. had reported a sharp rebound in quarterly sales in the United States over Q1, 2021, however, a global-scale shortage of semiconductors appeared to have put a kibosh on the gains.

In factuality, stiffer social distancing measures alongside a sense of personal safety among pandemic-wary Americans during peaks of the outbreak, had buoyed up sales of autos over first fiscal quarter of 2021, as more people were plumping for their personal vehicles instead public transports, suggested analysts.

Nevertheless, the broad-based gain in traditional automakers’ sales in the US over Q1, 2021, was checked by a global-scale chip shortage which had already forced a flurry of automakers to momentarily halt production, while a Texas winter storm in February alongside a countrywide rare deep freeze forcing carmakers to snap out productions lines, turned many Wall St.

analysts cautious about the speed of recovery in global automotive sectors.

US automakers report widespread rise in sales in first quarter

In tandem, according to General Motors Co.’s first-quarterly earnings report, the Detroit-based carmaker’s US sales surged 4 per cent to 642,250 units, largely boosted up by an increase in demands of its Escalade and Encore subcompact crossover SUVs, while Japan’s grief-sickened carmaker Nissan Motor Co, had witnessed an 11 per cent bounce back in US sales to 285,553 units.

Meanwhile, citing the prospects of a full-fledged recovery in auto industry from the pandemic-induced wounds by the second half of 2021, GM Executive Vice President, Steve Carlisle, said in a statement following the Detroit carmaker's quarterly earnings’ report, “Sales are off to a strong start in 2021, we are operating our truck and full-size SUV plants at full capacity and we plan to recover lost car and crossover production in the second half of the year where possible”.