The CEO says the aim was for a "total project of 80 billion euros ($94.77 billion) over the next decade that would be a catalyst for the semiconductor industry... a catalyst for the entire technology industry"
"We hope the chip supply crisis will bottom out this summer and expect to see an improvement in this situation within the second half of the year," Woellenstein, told.
Reports highlighting the gravity of the situation revealed that the shortage could last for almost an entire year.
Several technical features in most new vehicles heavily rely on these computer chips to function properly. Therefore, the shortage is directly impacting production lines.
"Demand continues to exceed supply for new vehicles, and we expect this to continue throughout 2021, in part due to the production disruption," Chief Executive Officer Mike Jackson said.
AutoNation's gross profit per new vehicle at stores that have stayed open for at least a year jumped 61% to $2,739 in the first quarter from a year earlier. The company's gross profit per used vehicle jumped 17% to $1,744.
The need for increased personal safety during the COVID-19 pandemic has boosted sales for automakers, as people prefer to travel by their own cars to using public transportation.
The No.1 US automaker said it estimates that the seasonally adjusted annual sales pace for the first quarter of the year was around 16.7 million units.
