When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
Just wanted to know if anyone has real reliable information regarding the current chip shortage. I do check dealer inventory and some dealers have 20 plus GLE 350s in inventory. Others may have only 3 or 4. The 450s are much more scarce.I can only imagine that once inventories are more plentiful, the dealers are not going to be very quick in giving greater discounts, they will ride the wave of huge profits for as long as they possibly can. Only through fear of losing a sale to a competitor will they become more competitive. I have read conflicting statements as to when this current situation may end. Most believe that it will not be until sometime next year. Interestingly, my daughter has a GLB coming off lease in February 2023. As of now I am advising her to purchase it. She should keep it up to 1 year, still under warranty, and then trade it in for another MB. As of right now, the trade in value is about $7k higher than the purchase price coming off the lease. In any case, just wondering what the chip situation is now, thanks
"Real reliable information" in the sense of opinions of people who know, is that "things are getting better". The answer to the question of how many GLE 350s will be available in stock at your local dealer next week is unknown.
The current situation will not come to an abrupt end. It will fizzle out over time.
What isn't opinion, is that Q2 2022 global vehicle production was higher than the prior year. At least it isn't going backwards.
Nobody knows, but be prepared for it to last at least another year. I've read that there's some light at the end of the tunnel, but it'll take time. It's also not just the chip shortage. I was just in Germany last month, did a factory tour and visited the customer center where almost exactly three years ago I picked up my C63 for European Delivery. It was deserted compared to three years ago. The customer center was practically empty and the factory was operating at less than 50% capacity. The E Class line stood completely still. We saw the CLS and GT 4-door line which was somewhat moving, but the numbers they displayed above the line for how many cars they produce a day were scary low.
Also, Mercedes has already said that they will keep inventory low and focus on high margin models even after the shortages have resolved. We've yet to see how that strategy will work out for them, but they've realized that they can make more profit by selling fewer higher margin cars. Most of the SUVs are built in the US factory, which doesn't build anything else but SUVs, so there might be a better supply of them once they can get the parts.
All told things are getting better slowly but not in the short-term. Also I would check on actual cars on the lot first. Our dealer is out of 350’s and 450’s. Everything is pre-sold until next February yet the website shows that they have those cars listed as inventory.
Problem is that the dealer websites are auto populated and don’t list actually available cars. Most are already spoken for and get removed once delivered to their customers.
IMO, the chip shortage might end sooner than predicted because of inflation and high interest rates if a worsening recession adds to the misery index. Consumers are a fickle group swayed at times by news headlines more than good sense.
Excellent point Ron, somewhat similar to new home sales, prices going up, interest rates going up, eventually buyers going down because lack of affordability
Excellent point Ron, somewhat similar to new home sales, prices going up, interest rates going up, eventually buyers going down because lack of affordability
U.S. buyers are still buying at these inflated and marked-up prices.
The average new car transaction seems to increase by a thousand dollars per month, even through June of this year, Average transaction price is now over $47,000. It was $42,000 last December.
Luxury buyers are still active, although the <$35,000 market is slowing a lot. Which tells the manufacturers where to focus their model lineup for the next round. Up.
"Used-vehicle sales declined in July from June. Used supply is a bit higher than normal in retail and wholesale. As a result, prices in July declined more than normal depreciation trends for the time of year. "
08-07-2022, 12:34 PM
Chip Shortage
