Stellantis CFO Richard Palmer was less optimistic about chip supplies than other automaker executives, forecasting that they’ll remain scarce through the rest of 2022.
“I think it’s improving,” he said, “but it’s a slow process.”
Despite low inventory levels and price increases on many important materials, automakers continued cashing in on new-vehicle demand.
For GM, half of the inflation experienced in the quarter was driven by commodity costs. The other half related to logistics and other supply chain challenges, Jacobson said.
“Pricing remains strong,” Jacobson said, “and it’s held up more than we estimated at the beginning of the year, helping to partially offset the incremental commodity costs.”
GM’s average transaction price increased 5 percent to $50,261, according to Cox Automotive. Stellantis’ average jumped 12 percent to $54,065, and Ford’s climbed nearly 10 percent to $51,995, Cox said.
“Until production increases and inventory builds, we see demand continuing to be high,” Krebs said, “and so we would expect pricing to stay relatively high.”
At the same time, the automakers are saving money by not having to offer much in the way of incentives.
The average discount fell to $1,201 per vehicle for Ford, $1,906 for Stellantis and $1,705 for GM, Cox said.
Ford’s Lawler said the automaker anticipates strong demand through the rest of the year, despite economists’ concerns about a possible recession.
“The industry is still running stronger than what we can supply,” Lawler said. “At this point, we’ve not seen it slow down.”
Michael Martinez and Vince Bond Jr. contributed to this report.