Chip Shortage Hitting Auto Industry Hard
Feb. 28, 2022—If consumers want new cars, they'll have to wait.
A Fox 54 report stated that the same supply chain issue that’s hit supermarkets, department stores, and the gas pumps is showing no sign of letting up, which hampers one important aspect of the auto industry—microchips.
Not only has this shortage affected Americans seeking to purchase new cars, but those in the market for reliable used cars are feeling the sting.
Throughout the pandemic, auto manufactures tried to buy time with cash-in-hand consumers promising to provide new vehicles within 30 to 60 days, which for car buyers is frustration since they desire to drive off the lot immediately (unlike buying a Tesla). The fallout led to premium pricing for new cars. This led to more people looking for the obvious quick fix—buying used. But not even that was as smooth as consumers had hoped. The supply and demand model caused the price of used cars to elevate as well, meaning sellers and dealers can demand a higher price in this current market due to this shortage of microchips.
It’s not known when the issues will be resolved, but its worth keeping an eye on. With chip maker Nvidia's projections looking positive, automakers can only hope this resolves within the next three quarters of 2022.