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Elizabeth Warren Calls For Probe On Car Prices

By  |  December 23, 2021

New car prices are skyrocketing at the fastest pace on record. And Senator Elizabeth Warren says a lack of competition in the semiconductor industry is at least partially to blame. 

The world is in the midst of an epic computer chip shortage, one largely driven by Covid outbreaks and skyrocketing demand. 

The chip shortage has forced Ford (F), General Motors and other auto companies to slash their production. Car dealerships don’t have enough new vehicles to meet demand, setting off a wave of new and used car sticker shock.

“This market concentration has reduced competition, allowing giant corporations to deliver massive returns for shareholders,” Warren wrote in a letter sent Thursday to Commerce Secretary Gina Raimondo. “But it has harmed consumers by enabling these dominant companies to increase prices and underinvest in key capabilities, which has the effect of also reducing product innovation and product quality. 

The Semiconductor Industry Association responded in a statement to CNN by saying the trade group agrees with Warren that America needs to encourage greater domestic chip making, but it pushed back on the senator’s other points.