The low point in auto production was September. This is good news both for the global economic and the stock of auto parts. The increase in revenues will result from auto production returning to its full potential. They are found in many other products than smartphones, tablets and laptops. This chip is essential to products like automobiles, washers machines and refrigerators. These shortages have negative secondary consequences for companies manufacturing the components that go into these products.

Perhaps the most prominent example is auto parts businesses. This is because original equipment makers (OEM) have been placing lower orders. There is however a silver lining, as auto makers noted that there was a decrease in semiconductor supply in the third quarter compared with the prior quarter. One positive indicator is the fact that 13 million cars were produced in October, a significant increase over September’s 12 million.

This marks the first consecutive improvement in new vehicle production since March, when 18 million vehicles were produced. This is also consistent with other data points such as shipping rates and the number of ships waiting off of ports declining, indicating that September may have been the “bottom” when it came to supply chain issues. 3 stocks of auto parts that investors might consider purchasing are: Genuine Parts Company (NYSE): Meritor And Goodyear Tire & Rubber Company (GT).

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