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The chip crisis is helping automakers and dealers do something they've been wanted for decades: quit offering incentives and deals

The chip crisis is helping automakers and dealers do something they've been wanted for decades: quit offering incentives and deals

Mustang Mach-E GT Performance Edition.
Ford




With fewer new vehicles to sell, car companies are getting more money for the ones they make.




One consultant told Bloomberg that US automakers are receiving up to $10,000 more on trucks and SUVs.




Ford's CEO previously said the pricing power is "breathtaking" and is changing production strategy.


The most elementary tenet of economics is the relationship between supply, demand, and prices. If there's suddenly less of something that a lot of people want, it's going to get more expensive.At the same time, having competition in the marketplace encourages suppliers to increase supply and lower prices in order to win a larger share of buyers in the market.Indeed, that is the game that Ford, General Motors, and the predecessors of Stellantis have been locked in for decades, with each making as many cars as they could hope to sell and cutting prices with incentives and deals to attract customers.This year's shortage of semiconductor chips turned all of that on its head.
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