When will it be over?
The global chip shortage that has idled automotive plants, delayed shipments of new vehicles and pushed transaction prices to record levels may soon relent as early as this fall. But the dramatic impact of the last 12 months could very well continue into 2022 and beyond.
“Western and U.S. automakers have been hit the hardest. The Japanese have done generally better,” Dan Hearsch, an analyst at AlixPartners, told ABC News. “Automakers are definitely not happy. They’re missing out on sales, on volume. This is not a case where it’s good for any of them.”
Shrinking inventories have led to higher transaction prices for consumers flush with cash and looking to upgrade their rides. Even prices of used cars have skyrocketed nearly 17% in the last 12 months, according to data from iSeeCars.com. Pickup trucks and sports cars are seeing the largest increases.