DETROIT—Detroit automakers Ford Motor Co. and General Motors Co. both took advantage of insatiable demand from U.S. consumers for trucks and SUVs to offset the pain caused by supply chain bottlenecks. But both automakers warned investors that the cost pressures created by disruptions in the global semiconductor supply chain and price spikes for other commodities will continue well into next year. For the Detroit automakers, that means sustaining a complex juggling act: Pushing the price envelope on popular vehicles such as the Ford F-150 or Cadillac Escalade while scrambling to stabilize flows of semiconductors and keeping a lid on the costs of raw materials from steel to aluminum to magnesium. How much higher prices can go is a key question. The average GM vehicle sold for more than $47,000 during the third quarter. Ford raised prices on vehicles sold in North America by nearly $3,500 each, on average. Both companies …
Ford, GM Juggle High Prices, Supply Chain Pressure in Tesla’s Shadow
October 27, 2021
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