Current New Vehicle Market
- Thread starter 13COBRA
- Start date
+1
Auto are not super special/unique and are no different than any other cyclical good or service, no matter what everyone wants to say.
If housing can skyrocket and crater, along with everything else, so can cars.
One ting is certain. I wouldn’t wager @Klaus that tomorrow is Friday even if I was “high six figgahs”.lol, no.
Here are a couple very basic reasons ... I wont get too deep because @Klaus has you on the hook at the moment lmao.
--Unions. Car companies may enjoy the current "koolaid" but once the macro supply chain corrects and Co's have the ability to produce at pre-pandemic volumes, unions will not allow parent companies to simply slow production to boost profits--potentially costing union jobs.
--Interest rates. The Fed is positioned to raise rates at least 2x next year, possibly 3. The days of free or extremely cheap money are coming to an end. You can count on that. Obviously this will limit the buying power of the consumer further impacting supply (and demand).
Fed doubles taper rate, eyes three interest rate hikes in 2022 as inflation soars
The Federal Reserve on Wednesday announced plans to accelerate the wind down of its aggressive bond-buying program, opening the door to interest-rate liftoff in the first half of next year as policymakers seek to combat the hottest inflation in four decades.www.foxbusiness.com
6 figguh has officially fugged up and brought a Garmin to a Rolex fight.
We had our differences is the past and that’s ok but I have new found respect for him with his schooling of the mudbloods on experimental vaccines and plandemic virus’.
He may be ded wong about Trump but nobody’s perfect.
One ting is certain. I wouldn’t wager @Klaus that tomorrow is Friday even if I was “high six figgahs”.
We had our differences is the past and that’s ok but I have new found respect for him with his schooling of the mudbloods on experimental vaccines and plandemic virus’.
He may be ded wong about Trump but nobody’s perfect.
We fam homie
One ting is certain. I wouldn’t wager @Klaus that tomorrow is Friday even if I was “high six figgahs”.
We had our differences is the past and that’s ok but I have new found respect for him with his schooling of the mudbloods on experimental vaccines and plandemic virus’.
He may be ded wong about Trump but nobody’s perfect.
MF'er knows how to put on a case, that is for sure. If he wasnt filthy rich from Private Equity, or whatever it is he does, he should have been a lawyer.
Tomorrow isnt Friday, is it? lmao
lol, no.
Here are a couple very basic reasons ... I wont get too deep because @Klaus has you on the hook at the moment lmao.
--Unions. Car companies may enjoy the current "koolaid" but once the macro supply chain corrects and Co's have the ability to produce at pre-pandemic volumes, unions will not allow parent companies to simply slow production to boost profits--potentially costing union jobs.
--Interest rates. The Fed is positioned to raise rates at least 2x next year, possibly 3. The days of free or extremely cheap money are coming to an end. You can count on that. Obviously this will limit the buying power of the consumer further impacting supply (and demand).
Fed doubles taper rate, eyes three interest rate hikes in 2022 as inflation soars
The Federal Reserve on Wednesday announced plans to accelerate the wind down of its aggressive bond-buying program, opening the door to interest-rate liftoff in the first half of next year as policymakers seek to combat the hottest inflation in four decades.
6 figguh has officially fugged up and brought a Garmin to a Rolex fight.
Sorry bro, but @13COBRA is correct that pricing will never return to what it was.
Despite messaging from OEMs that the chip shortage is starting to ease and it will be resolved by 2023, that will not be the case. The Original Equipment Suppliers Association recently had a conference and On Semiconductor, a major supplier, made it clear that the chip shortage is NOT going away in 2022 or 2023. The reason being is that BEVs use a lot of chips and connected & autonomous vehicles use significantly more. Although chip makers are increasing capacity, it will not satisfy the demand for chips for automotive. With many new BEV and connected vehicles coming out in the next couple of years, all that additional capacity will be wiped away. As such, tight inventory will remain in place and car prices will continue to rise.
You think the sole reason pricing will never resolve rests on chip production?
Youre not serious.
As soon as the multiple chip factories come on line, the car production issue will come to an end. The supply will be plentiful again. Yes, it is a supply issue. The auto production capacity is there as you can see from previous years. Cars require low end chips that china will more than able to supply.
"China (alone) has 14 new chip fabs under construction or about the break ground"
"China (alone) has 14 new chip fabs under construction or about the break ground"
lol, no.
Here are a couple very basic reasons ... I wont get too deep because @Klaus has you on the hook at the moment lmao.
--Unions. Car companies may enjoy the current "koolaid" but once the macro supply chain corrects and Co's have the ability to produce at pre-pandemic volumes, unions will not allow parent companies to simply slow production to boost profits--potentially costing union jobs.
--Interest rates. The Fed is positioned to raise rates at least 2x next year, possibly 3. The days of free or extremely cheap money are coming to an end. You can count on that. Obviously this will limit the buying power of the consumer further impacting supply (and demand).
Fed doubles taper rate, eyes three interest rate hikes in 2022 as inflation soars
The Federal Reserve on Wednesday announced plans to accelerate the wind down of its aggressive bond-buying program, opening the door to interest-rate liftoff in the first half of next year as policymakers seek to combat the hottest inflation in four decades.
6 figguh has officially fugged up and brought a Garmin to a Rolex fight.
OEMS and unions agree for union workers to work 40 hours a week. Up until this year, union workers had the ability to double their weekly hours with over time. That's a thing of the past.
Interest rates will go up, as they should. They're too low now. With the rate of return on investments, rates for loans HAVE to go up.
Throw some terms out there
Value, and what they're selling for. MSRPs won't ever come down, they go up every year, and at least once mid-year. In fact, mid-year pricing increase just happened on December 8th for Bronco Sports, Mach-Es, EcoSports, Escapes, Edges, Explorers and Super Duties.
No. Replace "chips" with parts. There are SO many shortages. The chips made the news so that's all you hear about, but there's a shortage for just about everything; as large as body panels, down to oil filters. The Ford plant in KC is idle because of the windshield washer containers in the F-150s.
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First round is on me bro. Just don’t expect me to take a trip up to Minnesota.
Nevah!!
The chip shortage is only one factor, there are more things driving the prices up than just chips.
You have literally nevah been right about one ting in all the years you’ve been here. Ded. Fkn. Srs
You’re the Eddie Mush of svtp. The character from A Bronx Tale.
You are a sure thing. Just bet money on the opposite of everything you say and speak of.
All parts lives matter, but the chip makers are loath to kill the goose laying some pretty golden eggs right now. They always say, well chips are very hard and maybe in 2 or 3 years we will have enough additional production.
Just like the chip shortage will sort itself out - so will the auto parts availability and supply chain issues. This is the great thing about market economies - supply and demand always sorts itself out. Business cycles go up and down. Take advantage of it.
It is just a matter of timing if you want to purchase at the right price. I bought my home in 2008. Yes, it was a foreclosure now worth double what I am paying on it. It wasn't by accident.
Right now - don't buy a damn thing if you don't need it.
It is just a matter of timing if you want to purchase at the right price. I bought my home in 2008. Yes, it was a foreclosure now worth double what I am paying on it. It wasn't by accident.
Right now - don't buy a damn thing if you don't need it.
I don't disagree with you at all. But just because it's cyclical doesn't mean that it ends up back where it was, or even remotely close.
I don't follow, so the car manufacturers will magically find that balance of supply and demand that has so eluded them forever? Just don't see that happening.
