In the May 2021 issue of Car & Driver, an article appeared discussing production delays and cost increases, for American-made vehicles (including the Challenger and Charger), due to a shortage of silicone semi-conductors that control everything from windshield wipers to infotainment systems. IHS Markit estimates the shortage reduced global production by 1 million vehicles through the first quarter of he year. GM and Ford expect it to cut into earnings by up to $2.5 billion. The pandemic-induced shortage is expected to continue until the 3rd quarter. Car buyers are also expected to pay up to 6% more. One of our members, 68Mopar, has posted that a Dodge service managers informed him that Dodge is going to delete specific options that rely on the unobtainable chips. For example, buyers will no longer be provided with two key fobs- only one per car.
I saw a news report stating the same thing, a lack of semi-conductors for the auto industry. The cause they gave was the huge demand for digital gaming boxes. Everyone was buying them during the pandemic for something to do. I wonder what other manufacturers are doing. To spend $38,000 to $70,000 or more for a new car and only get ONE key fob? Not me. FCA should include one of those black box frequency repeater the car thieves are using as the second key fob.
Stellantis reported, Wednesday, a 14% increase in first-quarter revenues, despite a drop in production due to the semiconductor shortage. Revenues for the first three months of 2021 were 36.9 million euros, compared with 32.4 million euros ($44.42 million) in the first three quarters of last year. Lost production due to the global chip shortage for the period was 190,000 vehicles, Stellantis Chief Financial Officer Richard Palmer said. Eight of the company's 44 plants are currently affected, leading to reductions in shifts or vehicle lines. Palmer said the impact was likely higher in the second quarter but "is still very controlled." Palmer said the impact could continue into 2022. "We don't have great visibility," he said. "As such it would be imprudent to assume the issue is going to go away." Overall, shipments were up 11 percent to 1,567,000, due to higher demand and product mix. Production losses due to the semiconductor chip shortage darkened the improvements over the first quarter of 2020, when production was suspended temporarily due to the pandemic.
Here is a video, from Racer X, commenting on the lack of performance cars, in dealer lots, in the Dallas, TX area. Where are all the cars? Is the Auto Industry in Huge Trouble?? - YouTube
The Detroit Free Press published an update, on May 4, about the semi-conductor shortage and how it is affecting new car and truck sales. So far, the lost production, for North America plants, is projected to be as follows: GM- 277,030 vehicles Ford- 234,964 vehicles Stellantis- 162,087 vehicles Subaru- 45,272 vehicles Honda- 42,272 vehicles Renault/Nissan/Mitsubishi- 41,928 vehicles VW- 36,429 vehicles Toyota- 23,670 vehicles Tesla- 6,418 vehicles Ford was hit hard by a March 19 fire at the Renesas plant northeast of Tokyo, a leading semiconductor supplier that makes about 2/3 of all chips in the auto industry. The chipmaker is not expecting a return to full capacity until July. "The semiconductor shortage and the impact on production, will get worse before it gets better...Estimates project the full recovery of the auto chip supply will stretch into the 4th quarter of this year and, possibly, into 2022, making industry volume recovery in the 2nd half of the year even more challenging...Ford expects the chip crisis to cost he company an estimated $3 billion this year." (Note- Ford, alone, has approximately 22,000 completed vehicles sitting in lots awaiting installation of chip-related components). The entire article can be read at: https://www.usatoday.com/story/mone...onductor-chip-super-duty-kentucky/4929597001/
Racer X gives a good snapshot of the auto market right now. In my area a couple high volume dealerships will be sold out of all their new vehicle inventory in 90 to 120 days with NO new vehicles coming in. They will just be selling used cars. Also hearing that there's a shortage of rubber that will make it difficult for tire manufacturers to produce tires in the near future. (I think this is more than just a rumor, but I haven't confirmed it yet.) Bottom Line: expect prices on everything to go up for the foreseeable future.
The semi-conductor shortage and plant closures have caused a huge slump in U.S. auto sales. Overall, September 2021 sales fell 25% from last year. J.D. Power expects that U.S. automakers sold over 1 million vehicles in September, for an annual sales rate of 12.2 million. This is 4 million lower than last year's annual rate and 4.9 million below the rate for September 2019. Here are the quarterly automaker sales numbers: GM- down 33% Stellantis- 19% decline Nissan- down 10% Honda- down 11% VW- down 8% Toyota- up 1% Hyundai- up 4% There are now simply not enough vehicles available to meet consumer demand. Also, the average sales price hit a record $42,802- up 19% from a year ago.
Ive noticed that 2017 HC’s are now asking 12 to 20K more then what I paid a year ago….maybe time to sell.
I can't believe my good timing last November 2020 when I bought my new 2020 R/T. Not only was FCA offering a $3,750 rebate but the dealership knocked off around $2,500 as well. My $48,500 sticker was down to $42k+. Of course adding on the tax and extended warranty knocked it back up but looking back I am very pleased. (I rarely get lucky with timing - stock market, etc...)
