Ford Motor Company (NYSE:F) reported its sales in August dropped 33.1% in comparison to the same month last year. The reason for this sharp decline in sales is that the company continues to struggle with supply chain difficulties and chip deficits.

The company sold 124,176 vehicles in August, which is its strongest month of the year, taking the annual pace of sales down to 13 million from approximately 18 million at the start of the year. The annual sales pace for a month represents the number of cars the industry would sell yearly if it sold the same amount in each of 12 months. Analysts anticipated August sales pace to range from 13.1 million to 14.4 million vehicles.