[Car Story] Severe Semiconductor Shortage... US New Car Prices Also Surge

[Asia Economy Reporter Changhwan Lee] As the shortage of automotive semiconductors continues, new car prices in the United States have also risen significantly.

According to the automotive industry and Eugene Investment & Securities on the 22nd, the U.S. new car Consumer Price Index (CPI) last month recorded 158.6 points (pt), up 0.9% from the previous month. This is the highest level since related statistics began in 1947.

The simple average CPI for the second quarter (April to June) and the third quarter (July to August) were 180.7 and 196.1 pt, respectively, exceeding the record-high average selling price of the second quarter by 8.5%.

The rise in new car prices is interpreted as due to production disruptions caused by the shortage of automotive semiconductors. Demand is high but supply is insufficient, and semiconductor prices are rising, leading automakers to increase new car prices.

Major U.S. automakers such as General Motors (GM), Ford, and Stellantis are experiencing production difficulties, including temporary shutdowns of factories due to the shortage of automotive semiconductors.

In particular, GM recently halted production lines simultaneously at six North American plants, including Fort Wayne in Indiana and Wentzville in Missouri, due to the semiconductor shortage.

Foreign major automakers that sell many cars in the U.S., such as Toyota, Honda, and Hyundai Motor Company, are also facing production disruptions due to the semiconductor shortage.

Due to these production disruptions, new car inventory in the U.S. market has fallen to less than one month.

The surge in used car prices has also been cited as a reason why consumers are preferring new cars again over used cars.

As new car deliveries are delayed, used car prices in the U.S. have recently surged, and as the price gap with new cars narrows, more consumers are waiting to purchase new cars despite the wait time.

Ja-il Lee, a researcher at Eugene Investment & Securities, explained, "With the rapid rise in used car prices, it is estimated that waiting demand is gathering toward waiting for new car deliveries, even if it takes time, judging from the price trend."

It is expected that automakers' profitability will also improve as new car prices rise. The researcher stated, "The profitability of automakers in the U.S. market in the third quarter is expected to reach an all-time high."