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

Car and Driver

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.

Several automakers have announced some sort of production delay due to the chip shortage as well as the dramatic cold weather that hit Texas and other parts of the U.S. recently, affecting the production of some plastic and foam vehicle components.

The number of vehicles at or in transit to dealerships was down 26 percent in February 2021 compared to the same month in 2020. For pickup trucks, the number was closer to 50 percent. That all leads to a few unfortunate realities for anyone looking to buy a new car soon: you’re likely looking at fewer choices on the lot, higher prices, or a longer wait time for your car to arrive.

Read the article at Car and Driver.

Mar 28, 2021connieshedron
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