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| Chip shortage fallout: Sparse lots |
The toll keeps growing.
It took 11 weeks of microchip shortages before the number of vehicles taken out of North American production schedules reached 400,000, in late March. A little over a month later, the total is now approaching 800,000.
Those figures, from AutoForecast Solutions, show North America has been hit harder than any other region. The worldwide tally has now topped 2 million. AFS projects that at current rates, more than 3 million will be affected across the globe.
That’s the annual output of a dozen busy assembly plants. And the longer things drag on, the higher the chances that a significant amount of lost production won’t be made up.
“As scary and difficult and challenging as the early days were in COVID, the current supply shock is just as frustrating, if not more frustrating, for our team,” Ford CEO Jim Farley said in our Congress Conversations interview that aired last week.
Now dealers — and consumers — are really beginning to feel it.
On Page 1 in Monday’s issue, we’ tell you about a Colorado dealer with so few vehicles to display that his customers think he’s going out of business. We quote a dealer in South Carolina who is arranging fleet vehicles out front to make things appear somewhat normal. And you’ll hear from a Texas dealer who fears he’ll soon be “almost out of inventory.”
And it’s not just new cars. Used vehicles are experiencing a perfect storm, too. Demand is high. Supply is low. And wholesale values are skyrocketing.
We begin another story, also on Page 1, by telling you about how a Michigan dealer is responding to the fact that used vehicles are actually appreciating while on his lot.
That’s something you just don’t expect to happen. You also don’t often see the words “unprecedented,” “impossible” and “unthinkable” in a single Automotive News story. But they’re all in this one.
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“I think we’ve identified a true breakthrough, and there haven’t been any other solid-state batteries that work at room temperature at this size. We’ll not only demonstrate the scalability of the material, but the technology working at an EV-sized standard.” |
– FACTORIAL ENERGY CEO SIYU HUANG |
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From “Fields, Zetsche give boost to battery startup Factorial Energy” |
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Coming Monday in Automotive News:
The used-vehicle market is scorching. Who gets burned? With government stimulus, tax returns and generally high demand, dealers knew it was going to be a hot spring for the used-vehicle market. But part shortages in the automotive supply chain were unexpected and have only fanned the flames. Now, wholesale used prices are at all-time highs, in some cases surpassing the vehicles’ original sticker prices. Retail prices have been rising at a slower rate, putting pressure on some dealers’ margins. Automotive News investigates this unusual confluence of circumstances, which arrives as competition for inventory is as fierce as it’s ever been.
Perfecting the art of a perfect vehicle launch: Ford executives were clear last year that they couldn’t stumble with the launches of key products such as the Mustang Mach-E. Now the automaker is working overtime to make sure that doesn’t happen. It has compensated owners for production delays with free charging and FordPass Rewards points, and this month it offered $5,000 each to 125 owners to make up for the expiration of a New Jersey electric vehicle incentive. One Ford official has contacted dealers who have placed a premium on the EV and asked them to stop after complaints surfaced on Twitter. Automotive News looks at the lengths the automaker will go to get this launch as right as possible.
Weekend headlines
Alfa Romeo CEO’s ‘passion for brand’ could be key to reviving its fortunes: To fix Alfa Romeo, PSA veteran Jean-Philippe Imparato must tackle slumping sales, a shrunken lineup and unprofitable selling practices. He also plans to infuse his new leadership team with his passion for the storied sports-car marque.
VW expects worsening production hit from chip shortage: VW said further adjustments to production cannot be ruled out because the microchip shortage has been made worse after blizzards hit output by manufacturers in Texas.
Musk to host NBC’s ‘Saturday Night Live’ on May 8: The news comes as the CEO of Tesla and SpaceX celebrates the arrival of the Dragon spacecraft at the International Space Station.
Porsche plans EV battery cell factory in Germany: Porsche aims to be at the forefront of high-performance batteries, just like it is in high-performance combustion engines, CEO Oliver Blume said.
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Genesis’ first EV unveiled in China: A battery-powered version of the G80 midsize sedan is the brand’s first full-electric model, promising sporty acceleration and a generous driving range. The South Korean premium brand revealed the Electrified G80 at the Shanghai auto show, foreshadowing the marque’s electrification strategy in the important Chinese market.
Electrified vehicle forecast ramps up: Boston Consulting Group said electrified vehicles will account for more than half of global light-vehicle sales by 2026, an update to its forecast last year that such models would account for only a third of sales by 2025. The group also said zero-emission vehicles will replace internal combustion engines “as the dominant powertrain” for new sales just after 2035.
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A selection from Shift and Daily Drive:
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April 28, 1916: Ferruccio Lamborghini is born. In 1963, in Sant’Agata Bolognese, Italy, the tractor maker who had become a wealthy industrialist decided he wanted to top Ferrari so he founded a luxury sports car maker of his own.