Chip shortage: Insurer expects higher prices for cars

According to the credit insurer Euler Hermes, prices for cars could rise significantly in the coming months.

Because of the lack of semiconductors worldwide, the demand for vehicles is higher than the supply, said Ron van het Hof, the German boss of the Allianz subsidiary Euler Hermes, this Wednesday: “The European and German car manufacturers are currently on the longer lever due to the shortage of chips. “Normalization is only expected in the coming year.

The car manufacturers would now have a unique opportunity to noticeably increase prices after almost 20 years and to significantly improve their margins.

“That’s why there are currently 3 to 6 percent price increases across Europe,” said van het Hof. In Germany it is even between 6 and 10 percent. After the corona lockdowns, demand increased. New registrations in Europe increased by 25 percent to 5.4 million cars in the first half of the year.

“This recovery, as well as the increasing power to set prices, is a glimmer of hope for the entire industry that it will soon return to a new normal,” said van het Hof. “This is also an important signal for the suppliers.” Higher prices and margins are helpful for investing in climate protection and new technology.

Leave a Comment