Automotive Sales In Canada Plunged 11.4% In August Due To Chip Shortage

Automotive sales across Canada fell 11.4% in August from a year earlier due to vehicle shortages caused by the global shortage of semiconductors and microchips.

According to estimates compiled by DesRosiers Automotive Consultants, Canadian light vehicle sales totaled 146,925 units in August, compared with 165,837 a year earlier.

Sales were also down 19.2% from the 182,040 sold in August 2019, before COVID-19 walloped the global economy.

The seasonally adjusted annual rate of sales came in at 1.62 million, the second lowest month this year. Vehicle shortages had varying impacts from one company to another, with some posting increased sales, while others saw dramatic declines after being hit by supply chain constraints.

Several of the world’s biggest automakers have reported negative impacts on their production volumes due to the ongoing chip shortage. Ford Motor Co.’s (NYSE:F) August sales of its new vehicles declined by 33.1% in August from a year earlier in the U.S. due to the global shortage of semiconductor chips.

At the same time, General Motors (NYSE:GM) announced that it’s extending downtimes at eight production plants in the U.S., Canada and Mexico due to chip issues. Impacted vehicles include GM’s full-size and midsize pick-up trucks such as the Chevrolet Blazer and GMC Terrain, among others.

Electric vehicle maker Tesla (NASDAQ:TSLA) was forced to shutdown its manufacturing plants in China during August because of a lack of critical semiconductor chips.