• 2 days Squid Game Rampage Fails to Lift Netflix Stock After Stellar Earnings
  • 3 days Why Tesla, EV Stocks, Could Remain Highly Volatile For Years
  • 4 days Did Big Bank Earnings Just Signal ‘Real’ Economic Recovery?
  • 6 days The Cannabis Industry Is Looking To Fill The Employment Gap
  • 6 days Apple Capitalizes On Upward Momentum Ahead Of Earnings
  • 9 days Earnings Beat Isn’t Enough for S&P 500 Q3
  • 10 days The New World Tax Order
  • 12 days Is Crypto Finally Ready To Pay The Piper?
  • 13 days Is It Time To Buy The Global Gaming Market Dip?
  • 16 days Even The Mafia Has A Millennial Problem
  • 18 days Zuckerberg Loses Billions in Social Media Outage
  • 19 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 20 days US Retail Has A Major Supply Chain Problem
  • 23 days China Has Set Out To Crush Crypto...Again
  • 24 days Top Performing Cannabis Stocks of the Year
  • 25 days Millennials Could Power A 20-Year Bull Stock Market
  • 30 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 31 days 3 Restaurant Stocks In Full Recovery Mode
  • 32 days Bitcoin Is Driven By Testosterone
  • 37 days Quantum Computing Is The Newest Megatrend In Silicon Valley
Saudi Arabia Lost $27 Billion In Oil Crash

Saudi Arabia Lost $27 Billion In Oil Crash

The oil price collapse is…

American Wealth Is Built On Borrowing

American Wealth Is Built On Borrowing

Wealthy Americans are now funding…

The Pandemic Has Culled The Middle Class

The Pandemic Has Culled The Middle Class

In 2020, while the global…

  1. Home
  2. Markets
  3. Economy

Legacy Automakers See Massive Spike In Sales

Automaker

BMW is the latest legacy automaker to smash its sales comps for Q1, as automakers benefit from 2020's poor sales due to the pandemic.

BMW said it delivered 636,606 BMW, MINI, and Rolls-Royce vehicles to customers during the quarter. The figure isn't just a 33.5% rise in sales for the automaker, it's also a new all-time high for sales for the company's first quarter.

Not unlike other legacy automakers, BMW also saw a massive surge in electric vehicles. Its sales of EVs more than doubled to 70,207 units during the quarter. Total sales rose by 8.3% in Europe, 17,3% in the Americas, and an astounding 76.4% in Asia - thanks to Q1 2020's lockdowns. 

Recall, yesterday we noted that Mercedes also smashed its Q1 numbers. Sales were up 22% in Q1 thanks to not only easy comps but also record demand out of China. Globally, Mercedes-Benz sold 581,270 cars and saw its China sales figures rise by 60%. China is the biggest market for the brand and had the most favorable comps, similar to BMW. 

The pop for both automakers in North America shouldn't be too much of a surprise. We wrote just days ago that most legacy automakers in the U.S. were posting fantastic Q1 comps. 

What's selling? "Everything," said one Ford dealer. GM said its U.S. retail deliveries were up 19% in Q1, the company's first number reported against pandemic-impacted comps. The automaker sold 642,250 vehicles in the U.S. in the first quarter of 2021. Toyota sold 603,066 vehicles in the quarter, a 22% rise from Q1 2020, according to IBD. Even more pronounced was the company's numbers for March, which were up 87% against the first month of coronavirus lockdowns in 2020.

Volkswagen also posted blowout comps, as sales rose 21% in Q1 to 90,853 vehicles sold. The company was helped along by robust SUV demand while also selling 474 units of its new ID.4, which only went on sale in the U.S. in late March. 

Ford saw its sales rise 1% for the quarter, but sales were up 5% for trucks and 14% for SUVs. Even more notable, however, is the fact that Ford sold 6,613 Mustang Mach-E electric crossovers, up from just 3 sold in Q4. Ford said that "the fully electric Mustang Mach-E turning on dealer lots in just 7 days."

Both domestically and abroad, shoring up the supply chain has become crucial for all automakers heading into 2021. The auto industry, as a whole is rethinking its cost-cutting measures in the midst of both the pandemic and the chip shortage, Reuters reported last week. Companies are stockpiling key commodities at higher inventory levels and using software to track the integrity of the supply chains that they order from. 

Richard Barnett, chief marketing officer of Supplyframe, which provides market intelligence to companies across the global electronics sectors, told Reuters: “The whole issue is exposing the brittleness, the fragility of the automotive supply chain. We’re trying to dual-source whenever possible critical components.”

By Zerohedge.com

Back to homepage

Leave a comment

Leave a comment