Automakers on Thursday reported a rebound in first-quarter U.S. sales from a coronavirus-induced slump last year, but volumes were capped by a global chip scarcity that forced many companies to cut production. The need for increased personal safety during the COVID-19 pandemic has boosted sales for automakers, as people prefer traveling by their own cars to using public transportation. The semiconductor chip shortage and severe winter weather in south west United States in February have caused automakers to shut factories, turning analysts cautious about the speed of the sector’s recovery in 2021. “March auto sales are shaping up to meet or exceed pre-COVID levels. The big rebound from the prior month was assisted by stimulus and any pent-up demand from weather impacts in February,” IHS Markit analyst Chris Hopson said. “However, the stronger sales results are bumping against ongoing production issues, creating what could be a volatile demand environment over …
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