Lithia Posts Record Revenue, Earnings Per Share in Q1
Net income surged at Lithia Motors Inc. in the first quarter as the dealership group reported record first-quarter revenue and earnings per share, reports Automotive News. Lithia said Wednesday that it posted net income of $156 million, compared with $46 million in first-quarter 2020. Revenue for the quarter jumped 54 percent to $4.3 billion, a first-quarter record high, up from $2.8 billion in the year-earlier period. Earnings per share nearly tripled to $5.81 from $1.97 in first-quarter 2020. The Medford, Ore., retailer improved across all of its business lines, with same-store new, used and finance-and-insurance revenue up nearly 30 percent. Service, body, and parts business also rose slightly, Lithia CEO Bryan DeBoer said in a statement. "The pandemic impacted our first-quarter 2020 results only for the last two weeks in March, and our team's performance this quarter demonstrates our ability to be the leader in consolidating this highly fragmented industry," DeBoer said. Read more here (Source: Automotive News).
Daimler Cuts Hours for Up to 18,500 Workers Over Chip Shortage
Reuters reports that Daimler will cut working hours for up to 18,500 employees and temporarily halt production at two plants in Germany due to a shortage of semiconductor chips that has hit global car production, it said on Wednesday. "Currently, there is a worldwide supply shortage of certain semiconductor components," a spokeswoman said. "We continue to play things by ear." She added: "The situation is volatile, so it is not possible to make a forecast about the impact.” Daimler, which makes Mercedes-Benz cars, said workers at its plants in Bremen and Rastatt would have their hours shortened. The move will halt production at the factories but allow staff to continue working on special projects. The production halt will take effect from April 23 for one week, initially. Read more here (Source: Reuters).
Nineteenth U.S. Death Tied to Takata Airbag Reported in S.C.
Honda Motor Co. said on Wednesday it had confirmed the 19th U.S. death tied to a ruptured Takata airbag inflator since 2009 – and the 16th in one of its vehicles, according to Automotive News. The Japanese automaker said that following a joint inspection, the company and NHTSA confirmed that a defective Takata driver’s airbag inflator ruptured in the crash of a 2002 Honda Accord on Jan. 9, 2021, in Lancaster County, South Carolina. The defect, which leads in rare instances to airbag inflators rupturing and sending dangerous metal fragments flying, prompted the largest automotive recall in history. More than 400 injuries are also tied to faulty Takata inflators and at least 28 deaths worldwide. There have been two U.S. Takata deaths in Ford vehicles and one in a BMW. The Takata recalls cover about 100 million inflators among 19 major automakers worldwide, including about 67 million inflators in the United States. Read more here (Source: Automotive News).
Volvo Group Sees More Risk from 'Unstable' Chip Supply Chain
Volvo Group said it may see further disruption from the semiconductor shortage that has forced the truckmaker to idle plants, potentially hobbling a recovery that’s seen orders more than double. The Swedish company, which warned last month output might grind to a halt for two to four weeks in the current quarter, said it couldn’t rule out further disruption, reports Bloomberg. Production stoppages may spread to other parts of the business, according to a statement Thursday. The manufacturer also makes construction equipment, buses and boat engines. “The global supply chain for semiconductors as well as for other components remains very unstable and the uncertainty about the development is high,” Chief Executive Officer Martin Lundstedt said in Volvo’s first-quarter report. “We maintain our readiness to increase production when possible.” Vehicle manufacturers have been forced to idle factories as surging demand for electronic equipment during the pandemic overwhelmed suppliers. Read more here (Source: Bloomberg).
Ford Prolongs Shutdowns at Several U.S. Plants Due to Chip Shortage
Ford Motor Co. is planning more downtime at five North American factories due to a global semiconductor shortage, further disrupting output of a popular sport-utility vehicle and the F-150 pickup truck, the company’s biggest moneymaker, reports The Wall Street Journal. The Dearborn, Mich., auto maker said Wednesday that factories in Chicago, suburban Detroit and Kansas City, Mo., will be idled for an additional two weeks, extending the closures through May 14. An SUV plant in Ontario will also take an extra week of downtime in early May. The latest shutdowns further curb production of the Explorer full-size SUV and Transit vans. Output of the F-150 also will remain limited. Work resumed Monday at Ford’s truck plant near its headquarters in suburban Detroit after a two-week pause, but production was halted at its second pickup plant, in Kansas City last week, and that site will remain down through May 10. Read more here (Source: The Wall Street Journal).
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