NEW YORK (CBSNewYork) – GM announced a 40% increase in second-quarter US sales on high demand for its sport utility vehicles (SUVs) on Thursday, and indicated the trend will continue through 2022. Low borrowing rates, government support, and a desire for private automobiles as a result of the COVID-19 epidemic have boosted auto demand in the United States, despite rising prices due to restricted inventory following a global semiconductor shortage.
According to industry consultants JD Power and LMC Automotive, consumers are buying more expensive automobiles despite lower discounts, improving profits for automakers and retailers.
The Chevrolet Bolt EV set a new record for second-quarter deliveries, with overall Chevrolet deliveries up 31% and sales of Buick’s premium SUVs up 86%, according to GM.
In a statement, GM Chief Economist Elaine Buckberg stated, “The US economy is expanding, consumer spending is solid, and jobs are plentiful.”
“Consumer demand for automobiles is likewise strong, but supplies are extremely tight.”
In early session, shares of the US manufacturer were up 0.6 percent at US$59.49, as the company’s US auto sales soared to 688,236 vehicles in the third quarter.
“But I’m not concerned since demand is strong and the economy is improving. Furthermore, the worst of the chip scarcity for automobiles appears to be in Q2, so things could improve from here “David Whiston, a Morningstar analyst, stated/n
