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SVTPerformance's Chain of Restaurants
Road Side Pub
Frying Pan Into the Fire -- Chip Shortage
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<blockquote data-quote="Weather Man" data-source="post: 16662007" data-attributes="member: 137766"><p>Not good.</p><p></p><p><a href="https://seekingalpha.com/news/3735691-auto-sector-roundup-prices-soar-amid-supply-chain-turmoil-big-gains-for-zev-hyzn-and-li" target="_blank"></a></p><p><a href="https://seekingalpha.com/news/3735691-auto-sector-roundup-prices-soar-amid-supply-chain-turmoil-big-gains-for-zev-hyzn-and-li" target="_blank">Auto sector roundup: Prices soar amid supply chain turmoil</a></p><ul> <li data-xf-list-type="ul">U.S auto sales are forecast to fall about 9% in August due largely to a tight supply market amid the ongoing chip shortage and supply chain slowdowns.</li> <li data-xf-list-type="ul">Naturally, lower supply means higher prices in the market. Checks by JPMorgan indicate average transaction prices in the U.S. will set a new monthly record of over $41K in August, driven by continued beneficial mix and by an expected -55% Y/Y plunge in industry-wide incentive spending amidst the shortages. That pricing tailwind should be kept in mind for automakers like General Motors (NYSE:<a href="https://seekingalpha.com/symbol/GM" target="_blank">GM</a>), Ford (NYSE:<a href="https://seekingalpha.com/symbol/F" target="_blank">F</a>), Stellantis (NYSE:<a href="https://seekingalpha.com/symbol/STLA" target="_blank">STLA</a>), Honda (NYSE:<a href="https://seekingalpha.com/symbol/HMC" target="_blank">HMC</a>), Toyota (NYSE:<a href="https://seekingalpha.com/symbol/TM" target="_blank">TM</a>) and even Tesla (NASDAQ:<a href="https://seekingalpha.com/symbol/TSLA" target="_blank">TSLA</a>) if the volume numbers look disappointing.</li> <li data-xf-list-type="ul">JPMorgan expects new vehicle prices could rise as much as +16% Y/Y in August to accelerate from the +13% pace in July. The impact of Hurricane Ida on petrochemical availability and pricing is also in the mix. The hurricane may have also damaged a large enough number of cars in New Orleans and other larger cities to move the meter. The upward pressure on new and used vehicle prices and rental car prices as demand for replacement cars grows is seen potentially benefiting LKQ Corporation (NASDAQ:<a href="https://seekingalpha.com/symbol/LKQ" target="_blank">LKQ</a>) and Avis Budget (NASDAQ:<a href="https://seekingalpha.com/symbol/CAR" target="_blank">CAR</a>), while surge costs can in some cases offset the obvious benefit to revenue for a company like Copart (NASDAQ:<a href="https://seekingalpha.com/symbol/CPRT" target="_blank">CPRT</a>).</li> </ul></blockquote><p></p>
[QUOTE="Weather Man, post: 16662007, member: 137766"] Not good. [URL='https://seekingalpha.com/news/3735691-auto-sector-roundup-prices-soar-amid-supply-chain-turmoil-big-gains-for-zev-hyzn-and-li'] Auto sector roundup: Prices soar amid supply chain turmoil[/URL] [LIST] [*]U.S auto sales are forecast to fall about 9% in August due largely to a tight supply market amid the ongoing chip shortage and supply chain slowdowns. [*]Naturally, lower supply means higher prices in the market. Checks by JPMorgan indicate average transaction prices in the U.S. will set a new monthly record of over $41K in August, driven by continued beneficial mix and by an expected -55% Y/Y plunge in industry-wide incentive spending amidst the shortages. That pricing tailwind should be kept in mind for automakers like General Motors (NYSE:[URL='https://seekingalpha.com/symbol/GM']GM[/URL]), Ford (NYSE:[URL='https://seekingalpha.com/symbol/F']F[/URL]), Stellantis (NYSE:[URL='https://seekingalpha.com/symbol/STLA']STLA[/URL]), Honda (NYSE:[URL='https://seekingalpha.com/symbol/HMC']HMC[/URL]), Toyota (NYSE:[URL='https://seekingalpha.com/symbol/TM']TM[/URL]) and even Tesla (NASDAQ:[URL='https://seekingalpha.com/symbol/TSLA']TSLA[/URL]) if the volume numbers look disappointing. [*]JPMorgan expects new vehicle prices could rise as much as +16% Y/Y in August to accelerate from the +13% pace in July. The impact of Hurricane Ida on petrochemical availability and pricing is also in the mix. The hurricane may have also damaged a large enough number of cars in New Orleans and other larger cities to move the meter. The upward pressure on new and used vehicle prices and rental car prices as demand for replacement cars grows is seen potentially benefiting LKQ Corporation (NASDAQ:[URL='https://seekingalpha.com/symbol/LKQ']LKQ[/URL]) and Avis Budget (NASDAQ:[URL='https://seekingalpha.com/symbol/CAR']CAR[/URL]), while surge costs can in some cases offset the obvious benefit to revenue for a company like Copart (NASDAQ:[URL='https://seekingalpha.com/symbol/CPRT']CPRT[/URL]). [/LIST] [/QUOTE]
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Road Side Pub
Frying Pan Into the Fire -- Chip Shortage
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