Day: January 4, 2022

New Car Sales in 2022 Will See Bigger Rebound as Chip Supply Improves, Analyst Says

After a shortage in computer chips contributed to a shortage in new cars in 2021, analysts expect an improvement in chip supplies in 2022 to help new car sales rebound. An average gas-powered vehicle has about 1,000 computer chips, while electric-powered cars can have more than double that total, leaving the market with low car supply and high prices without sufficient stock.

Phil Amsrud, an IHS Markit analyst who follows automotive chips, predicted that supplies wouldn’t get better immediately in 2022 and would likely be better in the second half of the year.

“We’re seeing 2022 as being an improvement over 2021, but it’s not going to start January third or fourth,” he said.

Still, experts and analysts are unsure when chip supplies will reach levels from before the pandemic.

Cox Automotive predicted that new car sales in the U.S. will increase this year by more than one million to

Read More

Toyota to launch its own automotive software platform by 2025


© Reuters. FILE PHOTO: The Toyota logo is seen at a booth during a media day for the Auto Shanghai show in Shanghai, China, April 19, 2021. REUTERS/Aly Song/File Photo

(Reuters) – Japanese automaker Toyota Motor Corp is planning to launch its own operating system, which would be capable of handling advanced operations such as autonomous driving, for its vehicles by 2025, reported on Monday.

Software is playing an increasing role in vehicles, from managing electric motors and batteries to supporting functions such as autonomous driving, entertainment and navigation.

Toyota’s automotive software platform Arene will compete with German rivals, Volkswagen (DE:) AG and Daimler AG (DE:), with Volkswagen working on its ‘VW.OS’ software and Daimler planning to roll out its own ‘Mercedes-Benz Operating System’ in its cars by 2024.

The Japanese carmaker aims to put the operating system in its own vehicles by 2025, with plans to make it available

Read More

High New, Used Car Prices Keeping Pedal to Metal

As 2021 drew to a close, vehicle valuation and automotive research company Kelly Blue Book (KBB) released the startling stat that the “average used car price tops $27,000 for the first time,” noting that this base price is “a jaw-dropping 41% higher than in November of 2019, the last month before COVID-19 was first detected and knocked the world’s economy off its tracks.” 

KBB competitor Edmunds.com placed the average used car slightly higher at just over $29,000. 

Car shoppers — new or used — and those fixing wheels they already own should put some padding under their jaws because they will likely continue dropping throughout 2022. 

Among the hardest hit by COVID-19 lockdowns, microchip shortages and supply chain slowdowns, the automotive industry needs a lift, with inventories radically depleted and uncertainty ahead. 

There are essentially two schools of thought as to what happens over the next six months.  

Optimists believe

Read More