Volvo Cars sees chip shortage extending into 2022, Q3 profit dips By Reuters

© Reuters. FILE PHOTO: People look at a Volvo XC40 car during the Beijing International Automotive Exhibition, or Auto China show, in Beijing, China September 26, 2020. REUTERS/Thomas Peter/File Photo

By Helena Soderpalm

STOCKHOLM (Reuters) – Volvo Cars warned on Tuesday that the sector-wide semiconductor shortage would continue into next year, as its first quarterly report since listing on the stock market a month ago confirmed a dip in revenue and profit.

The Gothenburg-based carmaker said supply chains were still constrained but while production remained lower than demand, it had “improved month by month” since September.

“The supply situation has improved going into the fourth quarter, but we expect the industry-wide shortage of semi-conductors to remain a restraining factor,” Chief Executive Hakan Samuelsson said in a statement.

Volvo’s initial public offering (IPO) on Oct. 29 was the biggest in Europe so far this year, a sign of strength for the

Read More

New or used, car prices climb as inventory dips this spring

Ty Wright | Bloomberg | Getty Images

It’s a challenging time to be a car buyer.

High consumer demand coupled with a manufacturing shortage of microchips — key parts needed for today’s autos to operate — have pinched new-car inventory at dealerships across the country. And with drivers seeking affordable options for hitting the open road, the used-car market isn’t offering much of a reprieve.

“It’s a seller’s market, not a buyer’s market,” said Kelsey Mays, senior consumer affairs editor for Cars.com. “And sellers don’t have that much to sell.”

The average price paid for a new car is about $40,000, according to Edmunds.com. For used cars, it’s roughly $23,000.

A year ago, when dealerships and manufacturing plans were shut down due to the pandemic, chipmakers pivoted to focusing on the consumer electronics industry — i.e., computers and gaming consoles — and are still scrambling to meet the renewed demand

Read More