All of the narrative in supply chain issues, chips, blah blah blah is noise. It is not a supply story. It is a demand story. Not that supply is not a factor but the predominant factor is demand. And this will degrade. It is econ 101.
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.
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.
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.
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.
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.
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.
Regarding this pricing debate- we talking msrp or what they actually sell for?
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"
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First round is on me bro. Just don’t expect me to take a trip up to Minnesota.We fam homie
You have literally nevah been right about one ting in all the years you’ve been here. Ded. Fkn. SrsSorry 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.
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.
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.