BETHLEHEM, Pa. – The auto industry is in a state of flux. It’s still feeling the lingering effects of the pandemic and supply chain shortages, while also managing the growth of electric vehicles.

« The chip shortage is getting better, » said Dan Moyer, who leads the Auto Dealerships Association. « But also with the rise in the interest rates and the lack of confidence right now, the buying of cars has slowed down. »

Moyer says with the possibility of more rate hikes, dealers are expecting a continued drop in demand.

« When you see inventory on their lot, someone has to pay for that. And the dealers are the ones that have to pay for that, » Moyer said.

Meantime, the development of electric vehicles has manufacturers shifting their lineup, and losing a ton of cash.

Chevy announced this week it would be doing away with the Camaro to possibly bring it back as electric. Dodge will also stop making the Charger and the Challenger.

On Wednesday, Ford revealed the company lost $3 billion in the last two years for its electric vehicle development, and it expects to lose just as much this year.

« That’s a concern, but also there’s an investment on the dealers’ portions as well. They’re going to have put a significant amount of money into dealerships to get them ready for EV by 2030, » Moyer said. « We have some of the brightest minds really working on these cars and not just components itself, but the components for the vehicles. »

Ford says it expects its electric vehicles will be profitable by 2026.