The U.S. auto industry, hobbled this spring by the Covid-19 crisis, has bounced back stronger and faster than many expected with some companies reporting record profits in the third quarter.
Even for an industry accustomed to boom-and-bust cycles, the speed of the auto sector’s recovery from the pandemic-related shutdowns last spring has surprised executives and analysts, who just six months ago were calculating how many months companies could survive.
The pace of new-vehicle sales over the past few months has rebounded to the strong levels seen before the crisis, despite slim pickings on dealer lots because of tight inventory.
Car buyers are paying record prices for new wheels, with dealers citing strong demand for luxury vehicles and high-end pickup trucks.
Fiat Chrysler Automobiles NV on Wednesday reported record operating profits of $2.7 billion for the third-quarter. The results handily beat analysts’ expectations and marked a stark improvement from the second quarter, when the company posted a net loss of $1.2 billion.
