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Auto manufacturing facilities in North America and Europe continue to lose production time over the lingering global microchip shortage, now well into its second year.
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Hopefully, supply chain issues will resolve sooner rather than later, but until they do, dealers can take the time to prepare for some inevitable downstream repercussions.
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The Ukraine invasion has ramped up the price of metals used in vehicles and OEMs likely will pass these costs on to consumers.
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Aluminum jumped up to 4.8% to $3,449 a ton on the London Metal Exchange, while nickel rose to the highest level since 2011.
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A coalition has asked the U.S. Treasury Department to grant relief to dealers employing the LIFO tax deferment strategy who face excessive tax bills this spring.
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Dealers who build a used inventory strategy can now use it as a backbone of their success moving forward.
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Production cuts because of a shortage of microchips slow.
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Ford Motor Co. partners with chip maker GlobalFoundries to address the auto industry’s semiconductor supply shortfalls.
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The company will idle plants in Flint, Michigan; Fort Wayne, Indiana; and Silao, Mexico, just one week after the plants resumed production after an earlier shutdown related to the shortage.
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AutoNation predicts demand for new vehicles will continue into next year, as low-interest rates and robust demand helped the retailer boost quarterly earnings estimates.
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