“It feels just like the microchip, the entire semiconductor situation, it seems like it’ll take eternally. Simply to be candid, it seems like this downside is right here to remain,” he mentioned, explaining that as automakers increase their lineups to incorporate extra electronic-intensive electrical automobiles and develop their gross sales, demand for microchips will enhance.

“Can we ever get to a degree the place we’re actually producing microchips at a velocity that is that a lot sooner than the business is rising?” Hollis mentioned rhetorically. “So the issue stays with us for lots longer than we would have anticipated initially.”

In different feedback, Hollis mentioned that quickly rising rates of interest “are actually not serving to” Toyota and different automakers within the U.S. because the inflation-fighting hikes made by the Federal Reserve drive up each the price of funds and the viability of leasing.

“What has occurred with rates of interest has been extra about what it does to the psyche of all people form of ready for one thing,” Hollis mentioned. “When you do not know precisely how excessive rates of interest are going to go, individuals need to cease and pause and see the place it is going.

“Within the quick time period, we’re nonetheless seeing ready lists for brand new automobiles, and we nonetheless see super-low stock and low incentives, so the affect [of rising interest rates] has been negligible,” he mentioned. “However what you are listening to and what you are beginning to see within the used-car value decreases, you are beginning to see individuals gradual up a bit bit.”