Supply: CHAINED!

Technicians assembling axles for automakers at Dana Inc, Reuters
What's Ahead

September 7, 2021
The timeline to normalcy is a moving target as the auto industry deals with supply chain shortages, and its not just chips, it's labour and raw materials too.
The U.S. lost as many as
7 million units of auto production

for the 2020 and 2021 calendar years

Automaker Incentive Cuts

Vehicle Manufacturers are focused on improving their bottom line, as a result of lost production output.
Source: Bobit

"Manufacturers are cutting incentives, some much more than others — but those maintaining incentives closer to 2021 levels aren’t going to have near the allocation." Perry Ressler, Pritchard Commercial Sales, Iowa. 

For 2022, fleets should brace for price increases
and dramatic incentive reductions.

Chipmakers Moving Allocation

Chip sales to the automotive industry constitute only 5% of the overall semiconductor chip market, which makes it easier for chip makers to divert production to higher margin sales (ex. smartphones, computers, and electronics).

Full Automotive Fleet Article
Video | 7 Strategies to mitigate 2022 supply constraints
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