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Originally Posted by Erick Estrada
There's some truth to that as automakers have now got a taste of higher profits as opposed to manufacturing more and making less. BMW I think had their best year ever in 2021 for example. I do think that automakers will be in no hurry to ramp up production to pre-pandemic levels but the reality is that the moment some of them do, the rest will have to follow as we are finding out with the inflated used vehicle costs that the average person doesn't want to wait to order a car as they want it today so the automakers that pump out the most vehicles will sell the most until we reach equilibrium and once that happens then it probably goes the other way back to overcrowded lots and dealer incentives. It will probably take a few more years and it's going to be tied to COVID breakouts but sub MSRP will be a thing again.
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Porsche and other luxury manufacturers also had their biggest volume sales years ever. New car availability and the state of the used car market have far less to do with a chip shortage and far more to do with trillions of new dollars in the economy needing a place to be spent.