TIGHT NEW CAR INVENTORY, SOARING TESLA & CHEAP CHINESE CARS - AUTOLINE AFTER HOURS 588

EV Channels Review

This Autoline After Hours episode delves into the persistent automotive inventory shortages and their root causes, primarily focusing on the ongoing chip crisis and broader supply chain disruptions. Guest Jeff Schuster of LMC Automotive highlights that despite some improvements, the industry remains far from normal, with historic lows in inventory and record-high prices. The discussion emphasizes the "muddling through" approach of automakers, the impact of events like the Canadian trucker protests on production, and the significant role of chips, accounting for an estimated 85-90% of disruptions. While elevated pricing is expected to persist through 2022, with a potential leveling off in the longer term due to rebalancing supply and demand, the increasing mix of EVs will keep overall prices higher than pre-pandemic levels. The conversation also touches on the shift towards a "build-to-order" model, the potential for Chinese manufacturers to enter the US market with lower-cost options, and the accelerating transition to EVs driven by regulatory and industry investment rather than immediate consumer pull.