As chip shortage goes on, cars are scarce and prices are up
May 12, 2021 8:05AM AKDT
By TOM KRISHER AP Auto Writer
DETROIT (AP) — Automakers are cutting production as they grapple with a global shortage of computer chips, and that’s making dealers nervous. With sales at a brisk pace despite high prices, and inventories shrinking, many fear they’ll run out of new vehicles to sell this summer. They’re buying up used cars with hopes of selling them to make money until production returns to normal. But no one is sure when that’s going to happen. Ford has warned that it expects to make only half the normal number of vehicles from now through June. General Motors and others have stopped making some smaller cars and SUVs and diverted chips to higher-profit pickup trucks and big SUVs.