My employer is still not taking orders as far as I know, our order board for new trucks through 2022 is full. They can't increase production by speeding up the line or adding shifts like they've done before due to component shortages.
Another interesting thing I heard at work just this week. We are telling customers who have orders booked that the price is going up, apparently the way the contracts are written we can do that, and have to due to component prices going up constantly. The customer has the option of canceling their order or accepting the increase. Supposedly almost all the customers are accepting the increases rather than canceling.
We build a light medium truck line in a partnership with GM and also some sort of cutaway van series for them, I don't think they can get any increase in units from us.
I worked for Dana up until getting "downsized" in 2005 and Dana's fortunes turned from a company that had been strong since its forming in the early 1900s, to bankruptcy shortly after my layoff, by commodity prices jumping in the early 2000s. Dana was locked into contracts with the big 3, and then they found themselves in a world of hurt when those unforeseen large increases in steel prices that occurred after the contracts were written often meant they had to sell components like frames and axles to the big 3 for less than it cost to make them. The big 3 held fast to the contracts, basically telling Dana we don't care if you are losing money now, you are committed to selling at the price in the contract and that is what you have to do.
It bankrupted the company.
Apparently companies learned from the downfall of Dana and other supplier companies and there must be small print in contracts now that allow price increases if components and materials rise in price beyond an expected level.
Don't hold your breath waiting for new and car prices to fall. Aint going to happen. Material and component prices aren't going down and no manufacturer is going to lose money selling cars and trucks because of anyone's perception the prices are too high.
In fact, I've seen analysts saying the whole car manufacturers and dealers sales models are going to change permanently. Less incentives and rebates, and less inventory maintained at dealers even when production returns to some sense of normalcy. I'm glad I likely won't be in the market for a new or used car anytime soon!
