Chip Shortage Will Cost Car Industry over $200 Billion
The current chip shortage all across the country including right here in Michigan is costing the car industry big money, to the tune of over $200 billion.
At this point there is no end in sight. I really enjoy looking at new vehicles when they first come off the assembly line, but what good are they if you can't test drive a few.
I purchased a new vehicle about three years ago and thank goodness there wasn't any problem with missing chips or any other component that keeps new cars running smoothly.
According to the Detroit Free Press:
Since early this year, General Motors, Ford Motor Co. and Stellantis each have had to pause production, idle plants or build vehicles just short of the chips parts and then park them to wait for the parts to arrive before completing the vehicles and shipping them to showrooms.
This is just a long waiting game when it comes to these chips parts and trying to price out a new car is a complete waste of time anyway.
I drive by a Chevy dealership and a Ford dealership on my way home every day and all you see in the lots are nothing but used cars and not much else.
I was talking to one of the service guys at the Chevy dealership and he said at least the service department is staying busy and they still have all of their car salesman working through these crazy times.
The Detroit Free Press also adds:
The chips are used in a variety of car parts. The worldwide shortage started earlier this year, in part as a result of the COVID-19 pandemic. As people increasingly worked from home and kids were home-schooled, the demand rose for the personal electronics that the chips are used in.
Many of these chips are part of your cruise control, self parking and other safe driving technology.