General Motors CEO Says New Cars Won’t Get Cheaper Despite Chip Recovery

General Motors does not believe new car prices will go down too soon 6 photos
Photo: GM
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
If anyone expects new car prices to return to normal once the world manages to deal with the ongoing chip crisis, that’s not going to happen.
This is what the General Motors CEO said recently, explaining that the high new car prices are likely to continue in the long term, especially as the demand is as strong as ever.

Speaking during a recent video call with analyst Rod Lache, Mary Barra explained that achieving the inventory levels that carmakers had in the past is pretty much impossible. In other words, not only that dealerships are expected to continue to sell pretty much everything they have, but the waiting times will continue to be painful, to say the least.

Barra explained the prices for new cars will remain high even as we step into 2023, and it’s all as a response to the strong demand. After all, it’s a no-brainer: if cars sell like hotcakes even with a higher price tag, it’d be ridiculous for carmakers to make them cheaper in the first place.

The GM CEO doesn’t expect the chip shortage to be over completely anytime soon, explaining that some signs of recovery should indeed show up later this year.

But on the other hand, the end of the chip shortage is an unpredictable event that’s strongly related to the global health problem. In fact, this is what caused the chip crisis in the first place, not only by generating the skyrocketing demand for electronics but also due to the restrictions and shutdowns that affected chip manufacturers across the world.

General Motors has been one of the carmakers impacted the hardest, with the company temporarily halting the production at several of its American factories. In some cases, GM decided to produce cars without certain systems, as it tried to reduce the number of chips used on each model.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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