Used vehicle costs to rise due to computer chip shortages

Get ready to pay higher prices for used cars.

A dearth of semiconductor chip production is cramping new-vehicle production , limiting the availability of certain models in the coming months and threatening to raise used-car prices as buyers hunt for alternatives.

The shortages of chips, a result of the pandemic, are rippling through the automotive industry, undercutting production at General Motors, Ford, Honda, Toyota and other companies.

The upshot is that the used-car market, in particular, is poised for significant disruption – likely in the form of higher prices.

A similar thing happened in 2020 when automakers were forced to

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Supply Chain Latest: McKinsey Sees High Freight Costs Lingering.

The cost of shipping goods across the world’s oceans and air routes may stay high for a year or more as consumer demand stays strong and the already tight supply of capacity to move cargo commands a premium, according to McKinsey & Co.

That’s the outlook of Ludwig Hausmann, a partner in McKinsey’s office in Munich. He explained it this way:

  • On the ocean side: He sees container rates staying high because a now-consolidated liner industry’s past tendencies to wage price wars has “completely vanished so there is more discipline around balancing supply so that it fits demand.” On top
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GM signs deal with MIT-spinout to reduce EV battery costs by 60%

2022 GMC Hummer EV sport utility truck


General Motors has signed a deal with a Massachusetts Institute of Technology spinout for joint development of next-generation electric vehicle batteries that are expected to cut the cost of the technology by 60%.

The tie-up with Singapore-based SolidEnergy Systems, which was founded by MIT grad Qichao Hu, is focused on new battery chemistry to reduce the size of the batteries while increasing an EV’s range. That then helps lower the cost of the vehicles.

As part of the deal, GM and SolidEnergy Systems plan to build a prototype production line in Woburn,

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