Automakers Navigating Chip Roadblock

The production crunch faced by these four carmakers could be a buying opportunity.

Vikram Barhat 14.09.2021
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Electric mustang

The acute semiconductor scarcity has caused disruption across industries. One of the hardest hit among them is the auto industry. The ongoing auto chip crunch has forced leading global carmakers to cut production and shutter manufacturing plants.

The move triggered a selloff that saw many auto stocks suffer a double-digit drop over the past couple of weeks, as of August 19. However, Morningstar equity analyst David Whiston argues, on a year-to-date basis, automakers have held up reasonably well despite the bad news. He considers “any sell-offs because of the chip shortage to be a buying opportunity for long-term investors.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Ford Motor Co19.19 USD-2.44Rating
Nissan Motor Co Ltd ADR9.88 USD-5.73Rating
Toyota Motor Corp ADR177.85 USD0.21Rating
Volkswagen AG ADR18.30 USD-1.61Rating

About Author

Vikram Barhat  is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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