DETROIT : Volkswagen AG's Americas chief sees the global chip shortage lasting into the third quarter of next year, but believes the auto industry will maintain the discipline that has led to strong vehicle pricing and corporate profits even when the flow of semiconductors returns to normal.
"When the market springs back, it's not going to hold obviously exactly the way it is," he said in an interview."It will grow more competitive, but directionally the trend that started with the housing crisis, that carried through COVID and the chip shortage, will hold true." He thinks executives don't want to return to the days of high new-car inventories, massive retail discounting and flooding the rental market.
VW brand new-vehicle sales in the United States were up more than 21 per cent through November as the industry rebounded from the shutdown last year, but growth will be lower in 2022 at the more normalised rate as the chip shortage lasts at least through the third quarter, Keogh said.
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