Global Chip Shortage Means Thinner New-Car Supply, Higher Prices

 


·        Between the pandemic, winter weather in Texas ,and shipping problems around the world, automakers are able to manufacture fewer autos these days.

·        Auto plants around the world—with Ford, GM, Honda, Mitsubishi, Nissan, Toyota, and VW among the companies affected—are stopping production because there's a global shortage of semiconductor chips.

·        Some in-demand models are reportedly being hit with dealer markups as high as $10,000, and some Ford dealers have resorted to selling their demo models of the Ford Bronco Sport.

The thin line between just-in-time auto manufacturing and an idled production plant has become crystal clear again with the spreading effects of a global semiconductor chip shortage and other logistical problems.

That there's a chip shortage isn't news. We reported last month that the shortage would likely mean that a million fewer cars will be built around the world, costing the industry $61 billion in this quarter alone. The problem stems from a change in who the semiconductor manufacturers are making chips for right now.

Read Full Story at caranddriver.com >>

Post a Comment

0 Comments