He Monthly Index of Metals for Automotive (MMI) fell 1.4% for the August MMI reading. 
Car sales in the US
Ford Motor Co. reported his August retail sales rose 6.5% over the previous month.
However, retail sales decreased by 39.6% year-on-year. Total sales fell 33.1% year-on-year.
Ford truck and SUV sales fell 35.7% and 30.4%, respectively.
The automaker also announced an August record in electric vehicle sales.
“Electrified vehicle sales increased 67.3% from last year for a total of 8,756 vehicles,” Ford said. “Electrified vehicles attract new customers to Ford at a rate that is more than 8 points higher than Ford’s overall conquest rate.”
In the meantime, General Motors, which reports quarterly, in July reported that second-quarter sales rose 40%. In a letter to shareholders last month, CEO Mary Barra stressed the effort of the automaker towards achieving zero emissions. In addition, he said GM intends to develop “a complete portfolio of electric vehicles that does not depend on partial solutions such as hybrids and” electrified “ICE vehicles”.
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Hondameanwhile, August reported sales fell 15.6%, citing “industry-wide parts supply problems.”
Last month, Toyota reported US sales of 661,000 units for the quarter ended June 30, an increase of 376,000 units.
Delayed inventory
In its monthly forecast, JD Power and LMC Automotive new vehicle sales projection in the US August would drop from the August 2020 and August 2019 levels.
Sales in the United States are forecast to reach 1.09 million vehicles in August, down 13.7% from August 2020 and 25.3% from August 2020. 2019.
Insufficient inventory exacerbated by ongoing semiconductor shortages has put a cap on sales.
“August is historically the month of peak sales, as manufacturers launch promotional events to clear up vehicle inventories for the outgoing model year and start sales of the new model year,” said Thomas King, president of JD Power’s data and analytics division. “This year, however, the industry does not have enough inventory in dealerships to meet strong consumer demand. The consequence is that the pace of retail sales is depressed, but transaction prices are high. “
However, demand remains robust as average transaction prices remain high.
“Even with supply limitation by suppressing retail volume, record high transaction prices put consumers on track to spend $ 40.8 billion on new vehicles this month (the fifth highest recorded during the month of August) and ends eight consecutive months of record year-on-year consumer spending levels, ”King added.
Chinese car sales are down for the third month in a row
According to the Chinese Association of Automobile Manufacturers, car sales in China fell 11.9% year after year in July.
The fall marked the third consecutive month of falling sales.
Car sales fell 7.0% year-on-year and 1.1% year-on-month.
Intel wins a DoD contract to develop domestic semiconductor production
The main sales line of 2021 for the automotive sector has been the shortage of semiconductors, which has launched a key turn in the operations of car manufacturers. The modern vehicle needs chips, and right now, it’s just not enough.
Chips are also needed for several other capabilities. As such, the U.S. Department of Defense seeks to strengthen the U.S. position in space.
In news relevant to the domestic market, the Department of Defense has done so awarded an agreement a Intel through which the latter will help to develop a commercial semiconductor smelting ecosystem.
The move is part of the first phase of the DoD Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program.
“One of the deepest lessons from last year is the strategic importance of semiconductors and the value to the United States of having a strong national semiconductor industry,” said Pat Gelsinger, Intel’s CEO. “Intel is the only American company that designs and manufactures logical semiconductors at the forefront of technology.”
By Fouad Egbaria through AgMetalMiner
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