US
Laubacher's visit underscores US commitment to strengthening ties with Bangladesh: US Embassy
National Security Council’s Senior Director for South Asia Eileen Laubacher's just concluded visit underscored the United States’ "continued commitment to strengthening" the Bangladesh-US bilateral relationship, said the US Embassy in Dhaka on Tuesday.
During her four-day visit, Laubacher and other NSC representatives visited Rohingya refugee camps in Cox's Bazar.
Read more: US is largest source of investment in Bangladesh, other Indo-Pacific countries: Embassy
US is largest source of investment in Bangladesh, other Indo-Pacific countries: Embassy
United States is the largest source of foreign direct investment in the Indo-Pacific region, nearing $1 trillion as of 2021, and the largest source in Bangladesh, with over $4.3 billion invested and counting, said the US Embassy in Dhaka.
The fifth Indo-Pacific Business Forum will be held virtually on January 12 which will encourage people to engage with Indo-Pacific and U.S. businesses.
Read more: Bangladesh maintaining good relations with both US, China but it’s challenging: Momen
Together with its co-host, the government of Japan, the US will underscore their shared commitment to the region and highlight the economic ties that have contributed to Indo-Pacific prosperity and interconnectedness, said the Embassy.
The governments of the United States of America and Japan will welcome senior government officials, industry executives and other stakeholders to the 5th Indo-Pacific Business Forum.
Read more: We support calls for “thorough, transparent investigation” over Bangladeshi-American student's death: US Embassy
Hosted and sponsored by the U.S. Trade and Development Agency, in partnership with the Ministry of Foreign Affairs of Japan and the U.S. Department of State and in cooperation with the Ministry of Economy, Trade and Industry of Japan, the Indo-Pacific Business Forum (IPBF) is the premier public-private U.S. government event to promote trade, investment and economic cooperation between the United States and its partners throughout the Indo-Pacific region.
The event in Tokyo, Japan, will be complemented with robust virtual components for participants based in the United States, other Indo-Pacific countries, and around the world.
'Frequent visits' by US officials a good development: Foreign Minister
Foreign Minister Dr AK Abdul Momen today said Bangladesh remains “constructive and very positive” to address any gaps and wants to develop a “much better relationship” with the United States.
“We are very happy that our constructive engagement with the USA is increasing,” he told reporters at the Ministry of Foreign Affairs – noting that there is reason for a much better relationship between the two countries.
Momen said Bangladesh and the US believe and pursue the same values and principles like democracy and respect for human rights.
“We might have gaps or weaknesses somewhere and we have taken corrective actions when the friendly country raised such issues,” he said, referring to measures taken regarding the Digital Security Act (DSA).
Momen said they observed some weaknesses in the DSA, but by and large it was rectified.
Also Read: Up to PM to decide whether Momen will remain foreign minister or not: Quader
Responding to a question, the foreign minister said they welcome constructive engagement and have always said there is a set procedure if anyone has anything to say. “We remain very positive. If there is anything lacking, they will tell us officially. We will resolve it,” he added.
He said there had been not a single case of enforced disappearance over the last three years as far as his knowledge goes, which he sees as a great improvement.
“Five fingers of the hand are not equal. We take care of things if anyone creates any problem,” Momen said, adding that there had been no excesses from the RAB for many years.
Momen said the elite force developed much maturity over the years and they have an in-built accountability system.
“We don’t want to see any injustice anywhere,” said the foreign minister.
Asked about the two proposed agreements – General Security of Military Information Agreement (GSOMIA) and the Acquisition Cross-Servicing Agreement (ACSA) – with the US, Momen said, “Our major focus is people’s welfare. But to protect our economic development, security is also essential.”
He said Bangladesh maintains multifaceted relations with the US including trade and investment, and the two countries work together in the areas of peacekeeping, counterterrorism, climate issues and maritime security.
“They (US) have assisted us to keep the maritime boundary more secure,” said the minister.
Momen referred to US President Joe Biden’s recent remarks acknowledging their enduring partnership with Dhaka and terming Bangladesh’s economic growth in the past 50 years “a remarkable story”.
“I hope our nations will continue to work on democratic governance, climate change, refugees, and maritime security. We are invested in your success and support the ability of all Bangladeshis to freely participate in and contribute to their country's development,” Biden said, accepting the credentials of the newly-appointed Bangladesh Ambassador to the US, Muhammad Imran, at the White House.
Asked about the frequent visits by US officials, Momen said this is a rather good development that engagement between the two countries is growing and it also reflects that there are growing opportunities in Bangladesh.
Bangladesh wants to take relations with US to a new height: Shahriar
State Minister for Foreign Affairs Md Shahriar Alam on Monday said Bangladesh wants to take its relations with the United States to a new height with good intention and better understanding.
Bangladesh will also raise its demand for withdrawal of sanctions imposed on the elite force RAB during the visit of US Assistant Secretary of State for South and Central Asian Affairs Donald Lu.
"Our first intention will be to take the relations to a new height and make it deeper," he told reporters at the Ministry of Foreign Affairs.
Donald Lu who became Assistant Secretary of State for the Bureau of South and Central Asian Affairs on September 15, 2021, is likely to begin his Bangladesh visit on January 15.
Regarding Bangladesh-US engagements after the US sanctions, Shahriar Alam said there is 'transparent" process. "As long as we are transparent and they receive it with good intention, there is no scope for any ambiguity," he added.
Also read: We remain better prepared in 2023: Shahriar Alam
Responding to a question regarding fear of fresh sanctions, the State Minister again ruled out any such possibility, saying "Certainly not."
Asked about the letter sent by Foreign Secretary Masud Bin Momen to Bangladesh Missions abroad, he posed a question, "Do you have the letter?"
The State Minister said there were directives to Bangladesh envoys which he described as a "routine job" to uphold Bangladesh's interest and professionalism.
Regarding the Bangladesh visit of US Assistant Secretary of State for South and Central Asian Affairs Donald Lu, Foreign Minister Dr AK Abdul Momen recently said it is very good news that he is coming. "He is like a policymaker in this area. We welcome him.”
“We’ve a very good relationship with the US. We have multifaceted engagements with the US. There will be talks on different issues when he (Donald Lu) comes.”He also hoped Donald Lu’s visit will help strengthen the good relationship between the two countries.Replying to a question from the reporters on the US sanctions on Rab, the minister said bilateral relation is not determined by a single issue.
“The US is our biggest consumer and our biggest investor. With engagements in many areas, we don't have to worry about just one issue. We both have common values and principles.”
He said the US wants a democratic system and Bangladesh also wants a democratic system.
“The US wants to uphold human rights. We want to, too. Three million people of Bangladesh have sacrificed their lives for human rights, justice and democracy,” he added.
“We will talk about many things. It is open. Many issues will be discussed.”
US is invested in Bangladesh’s success: Biden
US President Joe Biden has said his country acknowledges their enduring partnership with Dhaka and termed Bangladesh's economic growth in the past 50 years “a remarkable story”.
“I hope our nations will continue to work on democratic governance, climate change, refugees, and maritime security. We are invested in your success and support the ability of all Bangladeshis to freely participate in and contribute to their country's development,” he said.
The US President made the remarks while accepting the credentials of the newly-appointed Bangladesh Ambassador to the US, Muhammad Imran, at the White House, according to the Bangladesh Embassy in Washington DC.
“As 2022 marks the 50th anniversary of US-Bangladesh relations, I would like to acknowledge our enduring partnership with Bangladesh,” Biden mentioned in his written remarks.
Read more: US National Security Council official arrives Saturday
While formally presenting the credentials to the US President recently, Ambassador Imran conveyed the greetings of President Md. Abdul Hamid and Prime Minister Sheikh Hasina to the US President.
Welcoming the new Bangladesh envoy in the United States, Biden said his administration looks forward to working with the ambassador to expand bilateral relations between the two countries.
“My Administration looks forward to working with you to deepen our relations as we address the opportunities and challenges ahead. It is a pleasure to welcome you to Washington,” he said in a letter to the Ambassador.
Biden also assured the Bangladesh ambassador of extending all sorts of cooperation during his tenure in the United States.
Read More: India to host "Voice of Global South Summit" January 12-13 virtually under theme "Unity of Voice, Unity of Purpose”
US to send $3.75B in military aid to Ukraine, its neighbors
The U.S. will send $3.75 billion in military weapons and other aid to Ukraine and its neighbors on NATO’s eastern flank, the White House announced Friday, as Russia’s invasion of Ukraine grinds on.
The latest tranche of assistance will include for the first time Bradley armored vehicles for Ukraine. The armored carrier is used to transport troops to combat and is known as a “tank-killer” because of the anti-tank missile it can fire.
The biggest U.S. assistance package to date for Kyiv includes a $2.85 billion drawdown from the Pentagon’s stocks that will be sent directly to Ukraine and $225 million in foreign military financing to build the long-term capacity and support modernization of Ukraine’s military, according to the White House. It also includes $682 million in foreign military financing for European allies to help backfill donations of military equipment they’ve made to Ukraine.
“The war is at a critical point and we must do everything we can to help the Ukrainians resist Russian aggression,” White House press secretary Karine Jean-Pierre said in announcing the aid.
Read more: Putin orders weekend truce in Ukraine; Kyiv won’t take part
The direct assistance for Ukraine includes 50 Bradleys as well as 500 anti-tank missiles and 250,000 rounds of ammunition for the carriers. The U.S. is also sending 100 M113 armored personnel carriers, 55 mine-resistant ambush protected vehicles, or MRAPS, and 138 Humvees, as well as ammunition for High Mobility Artillery Rocket Systems and air defense systems and other weapons and thousands of rounds of artillery, according to the Pentagon.
White House National Security Council spokesman John Kirby said the Bradleys will be particularly useful to Ukraine in ongoing heavy fighting in largely rural areas of eastern Ukraine.
“It’s very much tied to the war that we’re seeing on the ground right now and what we anticipate we’ll see throughout the winter months,” Kirby said.
Critics have complained that the U.S. has been too slow to provide key weapons such as the Bradleys and battle tanks like the Abrams, saying they could have helped in the fight last year.
At the Pentagon, Laura Cooper, the deputy assistant secretary for Russia and Ukraine, said this is the right time to provide the Bradley. “The Ukrainians have demonstrated a lot of growing proficiency in maintenance and sustainment,” she said.
Read more: Russia says phone use allowed Ukraine to target its troops
She added that the U.S.-led training set to begin later this month will enable troops to operate, maintain and repair the weapons and that providing tanks, such as the Pentagon’s more complex, gas guzzling, heavily armored M1 Abrams tank, would require more maintenance and other training.
The new U.S. package was detailed by the White House and Pentagon as Germany announced it would supply around 40 Marder armored personnel carriers to Ukraine in this year’s first quarter.
Germany announced its intention to send the Marder APCs following a phone call between Chancellor Olaf Scholz and President Joe Biden on Thursday.
“These 40 vehicles should be ready in the first quarter already so that they can be handed over to Ukraine,” Scholz’s spokesman, Steffen Hebestreit, told reporters in Berlin. Germany plans to train Ukrainian forces to use the vehicles, and Hebestreit said experts expect that process to take around eight weeks.
Germany has already given significant military aid, including howitzers, Gepard self-propelled anti-aircraft guns and an IRIS-T surface-to-air missile system, with three more of those set to follow this year.
Scholz has long been wary of pressure to supply the Marder and other, heavier Western-made vehicles such as tanks, insisting that Germany wouldn’t go it alone with such deliveries. Officials noted that other countries hadn’t supplied any. But this week, France, the U.S. and Germany all announced plans to send comparable armored vehicles that fall short of tanks.
Germany last year championed deals in which eastern NATO allies sent familiar Soviet-era equipment to Ukraine, with Germany in turn supplying those countries with more modern Western-made equipment.
Hebestreit said there had been talks with the U.S. and others since mid-December on how to support Ukraine going forward. He said the possibility of supplying Soviet-produced equipment is “slowly coming to an end,” while the situation in Ukraine is changing with massive Russian strikes on infrastructure and fighting that could increase when the weather warms up.
Ukraine and a number of German lawmakers inside and outside Scholz’s governing coalition also have called for Germany to deliver Leopard 2 battle tanks. Advocates of delivering the Leopard were cheered by the move on Marder APCs and vowed to keep pressing the point.
But Hebestreit said that battle tanks weren’t an issue in Thursday’s call between Scholz and Biden. He said Germany will stick to its principles of supporting Ukraine as strongly as possible, while not going it alone on weapons supplies and ensuring that NATO doesn’t become a party to Russia’s war in Ukraine.
Germany also said Thursday that it will follow the U.S. in supplying a Patriot air defense missile battery to Ukraine. That was at the request of the U.S. and also is expected in the first quarter, Hebestreit said.
It comes on top of Patriot systems that Germany has sent or plans to send to Slovakia and Poland.
Biden agenda, lithium mine, tribes, greens collide in Nevada
Opponents of the largest lithium mine planned in the U.S. urged a federal judge in Nevada on Thursday to vacate the U.S. government's approval of the project until it completes additional environmental reviews and complies with all state and federal laws.
U.S. District Judge Miranda Du said after a three-hour hearing in Reno that she hoped to make a decision “in the next couple months” on how to proceed in the nearly two-year-old legal battle over the Bureau of Land Management's approval of the mine Lithium Nevada Corp. plans near the Nevada-Oregon line.
Lawyers for the company and the Bureau of Land Management insisted the project complies with U.S. laws and regulations. But they said that if Du determines it does not, she should stop short of vacating the agency's approval and allow initial work at the site to begin as further reviews are initiated.
Lawyers for a Nevada rancher, conservation groups and Native American tribes suing to block the mine said that should not occur because any environmental damage would be irreversible.
Dozens of tribe members and other protesters rallied outside the downtown courthouse during the hearing, beating drums and waving signs at passing motorists.
Du has refused twice over the past year to grant temporary injunctions sought by tribal leaders who say the mine site is on sacred land where their ancestors were massacred by the U.S. Cavalry in 1865.
Read more: Biden intends to make his first visit to US-Mexico border
Lithium Nevada and the Bureau of Land Management say the project atop an ancient volcano is critical to meeting the growing demand for lithium to make electric vehicle batteries — a key part of President Joe Biden’s push to expedite a transition from fossil fuels to renewable energy through a reduction in greenhouse gas emissions.
“It is the largest known lithium deposit of its kind,” Laura Granier, a lawyer representing the company, told Du Thursday. “Our nation and the world will suffer if this project is delayed further.”
Opponents say it will destroy dwindling habitat for sage grouse, Lahontan cutthroat trout, pronghorn antelope and golden eagles, pollute the air and create a plume of toxic water beneath the open-pit mine deeper than the length of a football field.
“We need a smart energy future that transitions our economy from fossil fuels to renewables without sacrificing rare species in the process,” said Greta Anderson, deputy director of the Western Watersheds Project, which also petitioned in September for protection of a tiny nearby snail under the Endangered Species Act.
The Bureau of Land Management fast-tracked the project’s approval during the final days of the Trump administration. The Biden administration continues to embrace it as part of the president’s clean energy agenda.
Demand for lithium is expected to triple by 2030 from 2020. Lithium Nevada says its project is the only one on the drawing board that can help meet the demand.
Will Falk, a lawyer for the Reno-Sparks Indian Colony, said that “in this rush for lithium in Nevada, the BLM went way too fast in permitting this mine.”
Roger Flynn, a lawyer for the Western Mining Action Project representing several environmental groups, said the agency wants the project to move forward even though it botched the environmental reviews it was determined to complete before ex-President Donald Trump left office.
“Meanwhile, there will be this immediate, permanent massive environmental damage,” Flynn said.
Read more: Biden signs gay marriage law, calls it ‘a blow against hate’
Thursday's hearing marked the first on the actual merits of the lawsuit filed in February 2021. It will set the legal landscape going forward after the 9th U.S. Circuit Court of Appeals upheld a ruling in Arizona that voided federal approval of a copper mine.
That potentially precedent-setting decision raises questions about the reach of the Mining Law of 1872 and could have a bearing on disposal of waste rock at the lithium mine in the high desert about 200 miles (321 kilometers) northeast of Reno.
In addition to the cultural and environmental concerns about the potential effects, the new 9th Circuit ruling halting the Arizona mine in July was a focus of Thursday's hearing. Du told lawyers on both sides she was interested in "the extent to which (that case) controls the outcome of this case.”
The San Francisco-based appellate court upheld the Arizona ruling that the Forest Service lacked authority to approve Rosemont Copper's plans to dispose of waste rock on land adjacent to the mine it wanted to dig on a national forest southeast of Tucson.
The service and the Bureau of Land Management long have interpreted the Mining Law of 1872 to convey the same mineral rights to such lands.
The 9th Circuit agreed with U.S. Judge James Soto, who determined the Forest Service approved Rosemont's plans in 2019 without considering whether the company had any mining rights on the neighboring lands. He concluded the agency assumed under mining law that Rosemont had “valid mining claims on the 2,447 acres it proposed to occupy with its waste rock.”
Leilani Doktor, a Justice Department lawyer for the Bureau of Land Management, said the Forest Service and the BLM are under “different regulatory schemes.”
“Each step of the way, BLM followed its own regulations,” she said.
'Bomb cyclone' brings damaging winds, drenches California
Hurricane-force winds, surging surf and heavy rains from a powerful “atmospheric river” pounded California on Thursday, knocking out power to tens of thousands, causing flooding, and contributing to the deaths of at least two people, including a toddler whose home was crushed by a falling tree.
Raging seas damaged two historic piers, rock and mudslides closed down highways, and deep snow piled up at ski resorts in the latest in a series of atmospheric rivers — long plumes of moisture stretching far over the Pacific — to reach the drought-stricken state. The “Pineapple Express” storm originated near Hawaii and was pulled toward the West Coast by a rotating area of rapidly falling air pressure known as a “bomb cyclone.”
Even as rains were expected to let up and some evacuation orders lifted Thursday, crews were assessing damage, trying to restore power and beginning the cleanup while bracing for more wet and wild weather this weekend that could be particularly troublesome for communities along swollen rivers.
The blustery tempest that came ashore Wednesday knocked out power to more than 180,000 homes and businesses, according to poweroutage.us.
In Sonoma County, Aeon Tocchini, a 2-year-old boy, was killed when a redwood tree crumpled a section of his family's mobile home where he had been sitting on a sofa, authorities said. His father and neighbors freed the boy — nicknamed “Goldie” because of his light hair and sunny personality — but he couldn't be revived.
“He was the happiest child, always smiling and encouraging people,” his teary-eyed grandmother Aileen Tocchini said outside the damaged Occidental home where a red tricycle and yellow dump truck were buried under broken branches. "He was a love, an angel.”
Read more: Western NY death toll rises to 28 from cold, storm chaos
In Fairfield, a 19-year-old woman died after her vehicle hydroplaned on a flooded road and hit a utility pole, police said on Facebook.
The seaside village of Capitola in Santa Cruz County about 60 miles (100 kilometers) south of San Francisco suffered possibly the worst damage as waves that were forecast to top 25 feet (7.6 meters) crashed into homes and restaurants at the mouth of Soquel Creek and knocked out a section of its historic wooden pier.
Surf shattered the windows at Zelda’s on the Beach, tossing furniture around inside the eatery. The Wharf House restaurant, at the end of the Capitola Wharf, was cut off from the mainland after a midspan of the wooden structure collapsed.
Wharf House owner Willie Case said he had a “great degree of sadness” as he looked at the damage from a cliff above the village and lamented this his employees would be out of work until the pier is repaired. He noted that in 1982, the former restaurant at that site fell into the sea. He anticipates more damage as new storms roll in.
“I don’t think the party’s over yet,” he said.
Hurricane-strength gusts as high as 101 mph (162 kph) toppled trees onto buildings and roads, knocked out power lines and blew down the roof on a gas station in South San Francisco.
National Weather Service meteorologist Warren Blier said the wind speed recorded on a Marin County hilltop was among the highest he could recall in a 25-year career.
A large eucalyptus tree in Oakland crashed through the roof of Victoria James' apartment as she was preparing for dinner Wednesday. She and her children ran into the hallway, initially thinking it was an earthquake, and braced for an aftershock.
As water began pouring into their home, the family fled with only clothes on their backs – some of the children without shoes.
“There’s big holes in the ceiling. In my bedroom, the living room and the kitchen for sure,” she said from her car. “Everything’s damaged.”
A California Highway Patrol officer responding to a crash in San Jose was struck and injured by a tree on Highway 17, Officer Ross Lee said. The officer was expected to survive.
In Southern California, a helicopter crew plucked a man clinging to bamboo branches from an island in the Ventura River, Ventura County Fire Department spokesperson Andy VanSciver said.
Read more: Millions in US hunker down from frigid, deadly monster storm
The blustery winds and incessant rain were especially taxing for the homeless population in California, where 100,000 people live on the streets.
Glenn Scott, 59, who has arthritis in both knees and feet and needs a cane to walk, sought refuge on a bench outside the main San Francisco public library with a small group of other homeless people.
“I just have to do whatever I’ve gotta do and go wherever I can to get peace of mind,” Scott said.
California Gov. Gavin Newsom declared a state of emergency to allow for a quick response and to aid in cleanup from another powerful storm that hit just days earlier.
In the coastal community of Aptos, about dozen people were stuck at their homes because flooding, downed trees and debris blocked the road out, said Paul Karz, an employee at Seacliff State Beach. Violent waters had tossed picnic tables against a cliff, wiped out much of the beach boardwalk, damaged its wooden wharf and left only a “skeleton” of its sea wall.
Sonoma County authorities issued an evacuation warning for a string of towns along the Russian River, where greater flooding was expected by Sunday.
Sections of Highway 101 in Northern California were closed due to downed trees, while rockfall had shuttered several sections of the coastal Highway 1, including in the scenic Big Sur area.
As much as 2 feet (61 centimeters) of snow fell on Mammoth Mountain over 24 hours and more was expected, delivering another bonus to Sierra Nevada ski areas.
The storm came days after a New Year’s Eve downpour led to evacuations in Northern California, where at least four people died in flooding.
Atmospheric rivers, named by researchers in the 1990s, occur globally but are especially significant on the U.S. West Coast, where they create 30% to 50% of annual precipitation, according to the National Oceanic and Atmospheric Administration.
The storms won’t be enough to officially end the state’s ongoing drought, now entering its fourth year, but they have helped. Not including the latest deluge, recent storms moved parts of the state out of the “exceptional drought” category in the U.S. Drought Monitor. Most of the state, though, remains in the extreme or severe drought categories.
Rooppur consignment on sanctioned Russian ship may come by road from India
The consignment meant for the Rooppur Nuclear Power Plant (NPP) that had to be turned away from Bangladesh shores due to being carried by a US-sanctioned vessel, may ultimately be sent to their destination by road.
This is based on indications that the Russian ship, instead of going all the way back with the vital equipment it was carrying, has hovered in the Bay of Bengal since the incident in late December. Now the BBC is reporting that it may be looking to unload its consignment at the Haldia port in West Bengal.
India has been openly defying US sanctions on Russian ships since the start of the war in Ukraine. All Indian ports are thus open to Russia-flagged vessels, even those with sanctions on them.
Read more: Rooppur Nuclear Power Plant project delayed by Russia-Ukraine War: Yeafesh Osman
The Russian-flagged ship arrived at the Mongla port channel at the end of December with goods destined for the Rooppur plant, Mongla Port Authority Secretary Kalachand Singh said.
"We have learned that the cargo from the vessel can be unloaded at the Haldia port in India's West Bengal. From there, another vessel could carry the consignment for the Rooppur power plant and deliver it to a port of Bangladesh," he added.
Sadhan Kumar, operations officer of Khulna Conveyor Shipping Lines, said: "Earlier shipments for Rooppur NPP were delivered by Russian and neutral, foreign-flagged vessels at the Mongla port. After the unloading of the cargoes at the port, they would be taken to Rooppur."
Read More: Rooppur Nuclear Power Plant to get powerful reactors: Rosatom DG
The sanctioned Russian ship Sparta III was scheduled to dock at the port in the southwestern part of the country and unload cargo destined for the Rooppur NPP in Pabna.
But the authorities denied the ship permission to dock at the port after officials got a letter from the US Embassy in Dhaka saying that the ship was on a list of Russian ships sanctioned by the US.
Supply chain woes caused US auto sales to fall 8% last year
Shortages of computer chips and other parts continued to hobble the U.S. auto industry last year, contributing to vehicle sales dropping 8% from 2021 to their lowest level in more than a decade.
But there's good news for consumers in the gloomy numbers: Vehicle supplies on dealer lots are growing, albeit slowly, and automakers expect at least a small easing in prices this year as inventories grow.
Automakers reported Wednesday that they sold 13.9 million cars, trucks, SUVs and vans last year as the parts shortage limited factory output amid high demand for new vehicles. It was the lowest sales number since 2011 when the economy was recovering from the Great Recession.
But sales were up slightly in the fourth quarter and inventories grew as parts supplies improved enough to increase production a little. Analysts are now expecting sales to grow by roughly 1 million to around 14.8 million this year as demand remains strong. But they'll still be far short of the normal 17 million per year before the pandemic.
With many models still in short supply, though, the average new vehicle price rose 2.5% in December to a record of just over $46,000, according to J.D Power.
There are signs, however, that prices may be starting to ebb a little as inventories expand.
Toyota, for instance, finished the year with just under 24,000 vehicles on Toyota and Lexus brand dealer lots nationwide. That's up from about 19,000 at the end of 2021, but still far short of the 300,000 during normal years before the pandemic.
Read more: US economy likely returned to growth after shrinking in first 2 quarters of 2022
The improvement, although small, is allowing consumers to haggle a little on some slower-selling vehicles such as sedans, and even some luxury vehicles. But they're still getting top dollar for gas-electric hybrids and other more popular vehicles that are sold before they arrive on lots, said David Christ, general manager of the Toyota Division.
For most of last year, people who wanted new vehicles had to pay sticker price or above and take whatever models and colors dealers could get. But dealers have told Christ that changed a bit in the past two or three months for models that aren't as popular. Plus, he said more people are interested in lower-cost vehicles because inflation and higher interest rates are taking a bite out of their budgets.
“They're coming in and saying, ‘Hey, can I get a deal here?'" Christ said. “I do think that on some vehicles, not just in our brand, and across the industry, there has become a little more of a buyer's market where the customer can negotiate.”
Whether that holds up all year remains to be seen. If demand stays strong and people are willing to pay sticker price, then dealers will get that, Christ said. But if demand wanes or supplies increase dramatically, discounts could rise and prices could drop a bit.
Jessica Caldwell, executive director of insights at Edmunds.com, said Toyota's experience is likely to repeat itself through the industry with small price decreases on some models.
“There isn't as much disposable income to be put into a vehicle,” she said. “We've seen prices high before, but we've never really seen higher prices with the (higher) interest rates.”
But electric vehicles and other hot sellers will remain expensive because people want to buy them now, she added.
Read more: UK’s Sunak vows to halve inflation, tackle illegal migration
Caldwell doesn't see vehicle supplies or prices returning to pre-pandemic levels this year, and she's not sure if we'll ever get back to 2019 levels.
The computer chip shortage dates to the spring of 2020, when automakers were forced to shut down factories due to rapidly increasing COVID-19 cases. Chip makers shifted production to consumer electronics to feed a computer and gaming sales boom when people were stuck at home. When the auto plants restarted earlier than expected, chip makers weren't making as many semiconductors for automobiles, which must be made to withstand vibration and huge temperature extremes.
Auto chip production has improved, but still isn't back to pre-pandemic levels, so auto plants still aren't back to their full output.
As a result, the 13.9 million vehicles that automakers sold last year was about 1.2 million below 2021 numbers, according to Motorintelligence.com.
General Motors, with full-year sales up 2.5%, retook its traditional spot as the nation's top selling automaker. Toyota, which won the crown in 2021, saw its sales fall 9.6% last year. Ford reports sales on Thursday.
Sales at Stellantis, formerly Fiat Chrysler, dropped 13%, while Honda sales plummeted 32.9%. Hyundai posted just under a 1% increase to outsell Nissan, whose sales tumbled 25.4%. Kia sales fell 1.1% for the year, while Subaru was down 4.7%.
Electric vehicle sales hit more than 807,000 last year, up almost 65% from 2021.
Pickups and SUVs were 77.3% of sales while cars dropped to 22.7%.