VW Expects Chip Shortage to Ease in Third Quarter, Report Says

First Up 06/10/21

Beltway Talk Podcast: Dealers Make an Impact

Ashley Burch, AIADA’s Senior Manager of Grassroots & Advocacy, joins today’s episode of Beltway Talk to discuss advocacy, action, and how dealers can make this a summer of impact in Washington, D.C. She shares important information about the exciting advocacy and social media campaign dealers will join this summer in lieu of a traditional 2021 fly-in, and the cutting-edge tools AIADA will make available to them. Listen to the podcast here – and don’t forget to subscribe! 

VW Expects Chip Shortage to Ease in Third Quarter, Report Says

Automotive News reports that Volkswagen Group expects a shortage in semiconductor supply to ease in the third quarter but sees the bottlenecks continuing in the long term, a board member told Handelsblatt newspaper. "At the moment we have reached the lowest point. We are facing the toughest six weeks," Murat Aksel, VW's head of procurement, told the newspaper in an interview. He said he expects an around 10 percent shortage in chips over the long term because building up production capacities takes up to two years. VW will prepare for the bottlenecks by expanding its chips storage, he added. VW has been unable to build 100,000 cars due to the shortage, CEO Herbert Diess said in March, adding the group would not be able to make up for the shortfall in 2021. Read more here (Source: Automotive News). 

U.S. Consumer Prices Rose Strongly Again in May

U.S. consumer prices continued to rise rapidly in May as the economic recovery picked up, reflecting a surge in demand along with shortages of labor and materials, reports The Wall Street Journal. The consumer-price index surged 5% from a year ago, the highest annual inflation rate in nearly 13 years. The index measures what consumers pay for goods and services, including clothes, groceries, restaurant meals, recreational activities, and vehicles. The annual inflation measurements are being boosted by comparisons with figures from last year during Covid-19 lockdowns, when prices plummeted because of collapsing demand for many goods and services. This so-called base effect is expected to push up inflation readings significantly in May and June, dwindling into the fall. Prices for new vehicles have soared because of a computer-chip shortage that has crimped car production. That, in turn, has bolstered prices for used autos. Rental-car prices have soared because companies sold their fleets when demand collapsed along with travel during the pandemic. Read more here (Source: The Wall Street Journal). 

U.S. Files Second Labor Complaint in Mexico Under Trade Pact

The United States asked Mexico on Wednesday to review whether workers at an auto parts factory were denied labor rights in the second labor complaint brought by the Biden administration under the new North American trade deal in less than a month. According to Automotive News, the U.S. Trade Representative's office said it made the request involving the Tridonex auto parts factory in the northern border city of Matamoros. The AFL-CIO, the largest U.S. labor federation, petitioned the agency last month to review the case over allegations that the plant denied workers collective bargaining and free association rights. The complaint was brought under the "Rapid Response Labor Mechanism" of the U.S.-Mexico-Canada Agreement (USMCA). The pact allows the review of factory-specific labor grievances and could ultimately result in import restrictions on the plant's products. Read more here (source: Automotive News). 

Tesla to Launch High-End Model S 'Plaid' to Fend Off Mercedes, Porsche

Reuters reports that Tesla Inc will deliver a high-performance version of its Model S on Thursday, aiming to reignite interest in the nearly decade-old sedan and fend off rivals such as Porsche, Mercedes-Benz, and Lucid Motors in the luxury electric vehicle market. Tesla redefined electric cars in 2012 when it launched its high-end Model S with a sleek design and long driving range, but is facing a raft of new challengers. The automaker plans to livestream the delivery of the first Model S Plaid at its U.S. factory in Fremont, California at 7 pm PT, according to its official Twitter account. CEO Elon Musk has not said whether he will take the stage, but he has been on Twitter promoting the new model, which is priced at $129,990 against $79,990 for a long-range Model S. Read more here (Source: Reuters). 


Around the Web

They Love to Hate the Car That People Love to Hate [NY Times]

Here's What It Will Take for EVs to Take Over the Car Market [Car and Driver]

These Car Rental Alternatives Will Get You There This Summer [WaPo

AIADA Adds Affinity Partner, Launches New Advocacy Campaign [Auto Remarketing]