General Motors (NYSE: GM) has had a good turn in North America after it reported increased sales over the first quarter. However, the computer chips shortage continues to be a significant stumbling block to the company’s manufacturing operations.
Business performance figures
The vehicle manufacturing company disclosed its sales figures on Thursday, outlining that it managed to sell about 642,250 cars and light trucks in the first three months. The figure represented a 4% rise in sales. The previous year affected the company as it did to the other businesses worldwide, following the deadly Covid-19 pandemic.
Toyota Motor showcased a staggering contrast when it reported its strong rebound in sales. The Japanese carmaker disclosed that it had witnessed a 22% sales jump in North America over the first three months of this year. The jump represented abo0ut 603,066 cars and light trucks. March turned out to be the best time for the company, reporting its record-high figures at the time.
Toyota’s outstanding sales saw it beat Ford Motor (NYSE:F) sales, but both companies continue suffering the semiconductor shortages. Initially, Ford Motor reported its sales to have climbed by just 1%, which translates to about 521,334.
France’s Peugeot SA and Fiat Chrysler came together to unveil a company known as Stellantis some years ago. Reports show Stellantis doing quite well in its first quarter, which has achieved a 5 percent increase in sales.
Chips turn out to be a major setback
Ford and General Motors reported a drop in sales to fleet operators such as governments and the rental car companies. However, they showcased excellent performance in individual sales to customers. Sources indicate substantial increments in this regard.
General Motors and Ford have, in several instances, complained about slow production activities in some of their plants. In many cases, the companies have been compelled to halt production activities due to semiconductor shortages, among other factors.
General Motors continues striving to survive. For instance, the company has decided to start manufacturing vehicles without the chips. The plan is to install those chips in the future when the supply goes back to normal. The company looks forward to great times ahead, hoping that the supply improves.