Melissa, Hyundai Honda, Lantis discussed on CNBC's Fast Money


We'll break it all down fast. Money returns welcome activists. Money four chairs on the move today after the automaker announced production cuts due to the ongoing chip shortage crisis. Philip got the details from chicago hotel. Melissa the announced this late in the day and it essentially is gonna hit the big profit maker for four the f. one fifty because of the shortage the company will be idling the plant in kansas city where they build the f. one fifty. It's already been shut down this week and last week. They're also going to shut it down next week. And they're also going to be reducing the number of shifts at the f. One fifty plant in dearborn michigan dropping. That down to one shift next week again because of the shortage of chips that is limiting their ability when it comes to production. We'll get ford august sales numbers tomorrow. In terms of industry sales in august. We knew it would be rough and the numbers are finally in. According to motor intelligent the sales rate for the month of august with thirteen point one million vehicles again. that was basically what people were expecting. And that is well below what we saw. These are the annual numbers back. In april it was eighteen point five million. So we're seeing the fall off here because of the limited supply take a look at toyota hyundai honda. All of them reported lower sales in the month of august due to the restricted supply. And then you've got gm and still lantis and the reason we're showing you. These guys is because they don't report their monthly auto sales but both of them have had to cut their production of pickup trucks again. The profit drivers for those two companies in north america. If there is any group though that is for the most part withstanding the shortage of vehicles mainly because they can also take used vehicles. It's the auto dealers we're talking about auto nation group one penske all of them and it's not just these guys look almost all of the auto dealer stocks because of the used market being so strong and because what they are doing when it comes to new vehicles and the high transaction prices. Melissa spin a heck of a year for the auto dealer stocks fell. What's your what's analyst. Take on on sales in the future. I mean the longer there are production delays. You might go and buy a used pickup truck which then might delay the new purchase further down the line. That's a possibility the the only thing that people know for sure is that the chip shortage. It's not going to last for the next several months. Nobody's quite sure when it's going to get back to normal but clearly cove it in asia hurting the chip production there and plants in malaysia and other places and as a result not enough chips are coming over to the automakers. Not just here but around the world and so you're going to see these restricted sales going well into next year. Melissa now. i'm not saying we're going to see a thirteen point. One million rate every month between here in april but it's almost impossible at this rate for the automakers to catch up on inventory and as a result it's gonna be tight at the dealership and the used market will remain strong. All right fell. Thanks phil abo- tim seymour. How do you process the shortage. Impact on on production. I don't think i need to process it. I can see in the share prices down twenty five percent ford. Gm and and. How many times do we need to hear this news. I think this is again. i'm not killing the messenger. I'm saying from a markets perspective. I think we see we see companies that have never been more profitable. Companies are run better. We're seeing companies that have a future companies that are well positioned in ev. We've talked about the ford. One fifty being the most popular car in north america and arguably one of the highest profitable most profitable cars in north america so look at the valuation and these companies look at their positioning in the most exciting part of the auto segment and take that data coming out of used car prices in auto dealers. And say you know you're not gonna see this demand go away and it's very interesting to me you. Price auto companies one way when they don't have a current business and treat it differently in the longer term. I just think that investors need to be patient and there's an amazing for companies that have been through a war and this is a war. This is a very good situation. They have so. Does this pretty much karen. i mean. it's tim seems to be outlining like like an iphone. Delay people eventually by one just down the line but it's not a sale loss. Still even at this point right exactly talk about like if you don't go out to dinner. That is a sale lost. You're not going to make it up later. Eat may maybe but probably not. But i think it's just delayed not denied and you know you talk about are people have to turn to the used auto used car market. Yes they will. Those cars are also aging. The whole fleet is ageing of cars in america. So i think it's just you know a gratification delayed not denied long but you know that's been just a terrible place to be. I think lyric next beginning of next year is going to be very very important for them. And maybe we'll see some valuation out of crew's coming up alibaba.

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