Chip Shortage Boon 2 Automakers Bottom Line

https://www.politico.eu/article/automaker-earn-make-fewer-ca…

automakers to use scarce supplies on their most expensive models.
Carmakers are building fewer cars while making more money.
The result can be seen in their bottom lines.

Supply problem ain’t going away any time soon.
$25k EV mass availability is years down the line.

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Supply problem ain’t going away any time soon.
$25k EV mass availability is years down the line.

As suggested by others on this board, where is the “JC’s” incentive to make the supply problems go away?

Steve

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I can only hope that one good side effect of the car chip shortage is that it will result in the fixing of the terrible dealership structure that makes buying a car a dreaded task for most people.

There will always be a need for showrooms where you can take cars for a test drive and service centers but the actual sales process is mired in the early 1900s

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I can only hope that one good side effect of the car chip shortage is that it will result in the fixing of the terrible dealership structure that makes buying a car a dreaded task for most people.

As discussed on this page only a few days ago, Ford and Mercedes management both say they want to move to a mail-order model. And what happens when something goes wrong? You can’t get your hands on someone in authority to make it right. You would be arguing over the phone, or by e-mail. Ever try that? Ever get anywhere, when you can’t reach out and strangle the person on the other side of the conversation? A POTUS who was pushing for health insurance reform talked about his mom, being treated for cancer, arguing over the phone from her hospital bed, with the insurance company that was stonewalling her. And, in today’s environment, don’t expect “big gummit” to come to your rescue against a “JC” with a profit motive.

Steve

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It’s actually giving the market a taste of the future when the ugly structure will change.

Full Price, is a fair price every time.

Less competition.

Higher prices.

Fat fat fatter margins for the retailer.

This indeed is a preview of the market structure being “fixed” - only - it’ll be less service options and it’ll be more like calling the 1-800 number of a Big Box – mind you it won’t get that good for some time to come.