The car business is on a streak, but it’s bad one for consumers.
Auto dealerships have record low inventories. (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)
The average price paid for a new vehicle set a ninth-straight monthly record in December of $47,077, according to Kelley Blue Book.
New car incentives have hit five-year lows. (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)
Low inventories caused by ongoing supply chain issues combined with high demand driven by an improving economy have reduced incentives to a five-year low and driven automakers to prioritize production of their most profitable models.
Lots at many dealerships are nearly empty, forcing operators to park the vehicles they have in strategic positions. (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)
“December typically is the best month for luxury vehicle sales, and 2021 followed that trend in a big
(Reuters) – Dutch navigation and digital mapping company TomTom warned on Thursday supply chain problems in the auto sector could last until the first half of next year after it reported a bigger than expected quarterly core loss.
Auto production has been hammered by a global shortage in semiconductor chips, which has forced carmakers still recovering from last year’s coronavirus disruptions to halt production again.
“Collectively we have underestimated how big the supply chain issues, and especially for semiconductor shortages, have been or have become”, Chief Financial Officer Taco Titulaer told Reuters.
Titulaer added TomTom’s consumer and automotive revenue numbers would continue to be affected by these challenges.
The group said the recovery of its automotive division, which supplies maps and navigation software to carmakers, lagged expectations as it saw sales fall
The Honda Ridgeline has been redesigned for 2021 to make it look more like a traditional pickup, but Fox News Autos Editor Gary Gastelu says it remains a unique option in the midsize class.
The number of new cars being sold is from record levels, but the prices being paid for them are the highest ever.
According to the J.D. Power and LMC Automotive Forecast, the average transaction price for a new vehicle is projected to be $41,044 during the month of July, a 17% increase over last year.
High demand is meeting low inventories caused by the ongoing semiconductor shortage hampering production across the industry, which has led to a drop in incentives and more cars selling for list price or even more.
“Eight percent consumers are paying near or above MSRP, which is driving up dealer profitability over 200% compared to 2019. But
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.