THE CHIP SHORTAGE WILL GET WORSE AND CAR PRICES WILL GO HIGHER - AUTOLINE AFTER HOURS 579

EV Channels Review

This episode of Autoline After Hours delves into the persistent automotive chip shortage, with insights suggesting it will extend well into 2023 and beyond, exacerbated by the increasing chip demands of EVs and connected vehicles. The discussion highlights how this shortage, coupled with automakers' strategies to prioritize higher-margin vehicles, is driving unprecedented increases in average transaction prices, reaching a 20-year low for incentives. The panel also touches upon the significant growth in EV sales, despite their small market share, and the challenges faced by traditional dealers in adapting to electrification, evidenced by Cadillac's dealer buyouts. A significant portion is dedicated to the impressive performance of the Lucid Air, though its high price point limits its immediate market impact. The conversation concludes with a look at Dodge's "Never Lift" strategy to maintain enthusiasm for its ICE muscle cars amidst the industry's shift towards EVs, including the upcoming electric muscle car in 2024.