SHOPSMART AUTOS – CUSTOMER INFORMATION – NOVEMBER 28, 2021 -2
What’s Behind the Car Shortage—And When It May Finally Be OverJeep
Specific factory layoffs led to shortages of
Jeep
Grand Cherokee models.
Kia
Temporary suspensions of operations at certain
Kia
manufacturers caused a shortage of the popular Telluride model.
Mercedes-Benz
Oh Lord, won’t you buy me a
Mercedes-Benz
? Maybe not this year: Ola Kaellenius, CEO of parent company Daimler AG, said chip shortages have led to short supplies of the luxury vehicles. “We hope to be able to stabilize the situation in the fourth quarter, and take that to the next level in 2022,” he told Reuters, noting that there’s no certainty that the situation will be resolved by then—so the automaker will have to remain “flexible.” The C-Class, GLC, and EQC models are particularly scarce.
Mitsubishi
According to Car and Driver,
Mitsubishi
vehicles manufactured in Okazaki and Mizushima, Japan, and Thailand will face production slowdowns.
Nissan
According to Nikkei (via Reuters), Nissan cut their production of various models by 30% for October and November, and the ongoing chip shortage will likely affect the brand into 2022.
Subaru
Upon the shutdown of an Indiana factory,
Subaru
faced limited production of its Ascent, Impreza, Legacy, and the ever-popular Outback models.
Toyota
The New York Times reports that
Toyota
will cut production by 15% in November 2021 due to semiconductor chip shortages, leading to very limited supplies of various models.
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Volkswagen
Various
Volkswagen
models are in short supply. Volkswagen Group of America CEO Scott Keogh warned Reuters, “Without a doubt, this shortage is going to go well into 2022, at least the second half of ’22.” He added that the chip shortage has forced the company to approach their manufacturing differently, explaining, “Historically, we’ve made the decision as if chips were nearly infinite, so each and every module required a chip—every window lift, every modulator. [There are] ways that we start to look at it when we develop the cars, can we do more modules with less chips? It can be done. These are all things we are looking at.”
When will the car shortage end?
The end of the car shortage is largely dependent on the
semiconductor chip shortage
, which means we may be facing this problem for quite a while, with everything from new and used cars to video gaming systems (yep, the chip shortage is the culprit behind PlayStation 5’s notorious elusiveness, too). Intel CEO Patrick Gelsinger announced that the semiconductor chip supply likely won’t meet its demand for about another two years, so supply chains will remain impacted. Auto industry expert Sam Abuelsamid explained to Consumer Reports, “It’s likely that car buyers will be paying more for new vehicles, at least through the next year and perhaps longer. Most automakers are facing production cuts, which in turn means a limited inventory of new products on dealer lots. Low inventory means reduced or nonexistent discounts and deals on new vehicles.” Still, even though vehicles will be pricier, he warns, now isn’t the time to sit idly by if you really need a new vehicle—just make sure to do a lot of research and be open to different options. “There is very little on dealer lots to actually sell,” he said. “If you anticipate needing a new car in the next six months, it’s probably best not to wait. Go ahead and place a factory order now.”
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