UBS: chip shortage is improving the auto industry is over the worst

UBS (UBS) said on the 23rd that it is cautiously optimistic about the global chip shortage, the worst of the auto industry may be over, and the negative impact of the shortage on the industry is improving.

Analyst Patrick Hummel said GM, Foss and Ford all revealed that the production outlook was improving with the gradual improvement in chip supply. As a result, the second quarter is expected to be a low point for global car sales and production, which is expected to outperform industry forecasts due to strong prices and product mix in the auto industry.

In addition to UBS, INA, a Mexican auto parts association, recently predicted that severe chip shortages would ease in July and return to normal in December. Foss previously thought the shortage would be alleviated in the third quarter, but long-term supply bottlenecks will remain.