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

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Record Revenues, Gross Profit Per New Vehicle, As Demand Outstrips Supply

As high demand and low new-car inventories drive record high prices across the U.S. auto industry, dealership group Sonic Automotive reported record third quarter revenues of $3.1 billion, a 20.6% increase vs. a year ago, and net income of $84.5 million for the quarter, up 41.2%,

“Consumer demand is still very, very strong,” said Sonic Automotive CEO David Smith, in a phone interview on Oct. 28, following a conference call to announce third-quarter earnings.

“Our new-vehicle days-supply is at an all-time low. The demand for new vehicles is at an all-time high, and we’re at an all-time record gross profit per vehicle, in our new-vehicle sales,” he said.

Smith said in the earnings call that Sonic’s 84 franchised, new-car dealerships had a record low of only around 2,400 new cars and trucks in inventory, representing a 10-day supply at the current

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15 Leased SUVs, Sedans, and Hatchbacks to Sell for a Profit

  • The pandemic has driven used-car prices sky-high. 
  • Owners can cash in by buying their car at the end of a lease and flipping it on the used market. 
  • The models most ripe for profit include the Kia Forte and Jeep Compass, an iSeeCars study found.
  • See more stories on Insider’s business page.

It’s not just dealerships that are profiting from today’s insatiable appetite for used cars. Amid an unprecedented shortage of vehicles on dealer lots, sky-high prices, and a buying frenzy, car owners can cash in big too. 

Pocketing thousands of dollars can be especially simple for people whose leases are expiring. At the beginning of a lease, a bank, leasing company, or an automaker’s financing arm sets the residual value of the vehicle: the agreed-upon price that a customer can buy the car for at the end of a lease term, often three years. 

Today, used-car values

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Tesla finally made a profit without the help of emission credits

Tesla sold enough cars and energy products to turn a profit even without counting the sale of emissions credits to other automakers — a milestone for the company. This was the eighth profitable quarter in a row for Tesla, but the first where it can truly say it’s a profitable automaker.

Tesla shared Monday that it logged a $1.1 billion profit in the second quarter of 2021, with $354 million of that coming from credit sales. The rest came from automotive sales, as well as a boost in energy storage sales.

Tesla pulled this off despite taking a loss of $23 million on its big Bitcoin bet (something that had helped it to a profit last quarter), a delayed rollout of the revamped Model S sedan and Model X SUV, and the global semiconductor shortage. All told, Tesla generated $11.9 billion in revenue in the quarter.

The Model

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