News out of Germany brings a bit of alarm to the new car industry. An explosion at a chemical plant owned by Evonik has led to a shortage in resin used in making brake and fuel lines. It appears there is no timeline for for the damaged plant to come back online in full capacity. This sort of thing kind of brings attention to the idiotic practice of only having one supplier. William Kozyra, chairman of Auburn Hills, Michigan-based TI Automotive, says “The shortage is real and immediate,”
Not that the automakers needed an excuse to inflate new car prices as they are already doing a great job of that, but it seems that if a shortage were to come to fruition prices may climb a bit due to demand.
Sources: Bloomberg LeftLaneNews