Electronics Supply Chain Weekly Digest 8-16-24.
DATAPOINT OF THE WEEK: New vehicle prices in the US were lower year over year for the 10th consecutive month in July. Higher inventory levels and higher incentives have shifted the U.S. auto market to favor buyers, but high loan rates and tight credit conditions continue to hold industry sales below potential.
Average incentives in July rose to 7.0% of the average transaction price – $3,383 – up from 6.4% in June and the most generous level seen in 2024. Incentives are now higher by 59.1% compared to one year ago when the average incentive package was 4.4% of ATP in July 2023. New vehicle incentives in July were at the highest point in more than three years.
Headlines:
Auto
- GM cutting jobs in China, planning major overhaul says Bloomberg
- South Korea holds emergency meeting as EV fires stir consumer fear
- Global EV sales up 21% in July as China records biggest jump of 2024, Rho Motion says
- Leasing model behind Europe’s EV drive at risk of breakdown
- Tesla stops taking orders for cheapest Cybertruck, offers $100,000 version now
- Global EV sales up 21% in July as China records biggest jump of 2024, Rho Motion says
- Volkswagen delays launch of Trinity EV further
- New-vehicle sales incentives in the US climb higher in July
IP&E
- TE Connectivity to pay $5.8B fine for illegally shipping components to Chinese entities
Industrial
- China industrial output slows in July, retail sales slightly better
- Deere beats profit targets as strong pricing, cost cuts counter slow demand
Datacenter
- Cisco cutting 7% of workforce, reports earnings and revenue beat for quarter
Semiconductors
- Intel sells stake in chip designer Arm Holdings
- Intel launches its first dedicated graphics chip for automotive
- Foxconn confirms Nvidia Blackwell ramp-up delays
- Huawei readies new AI chip to challenge Nvidia in China, WSJ reports
- Texas Instruments to get $1.6 bln in latest CHIPS Act funding
Other
- Apple pushes ahead with tabletop robot in search of new revenue
- Japan’s business sentiment in Aug slips on China’s slowdown
- Port of LA Sets July Volume Record as Holiday Goods Arrive Early
- July US retail sales up 1% M/M, much better than expected
- Autos, Hurricane Beryl weigh on US manufacturing output in July