There is a global of computer chips which resulted in shutdowns at many automotive manufacturing plants. This shortage has decreased the amount of cars available at some dealerships.
The shortage has alarmed republican lawmakers. Sen. Rob Portman (R) from Ohio warned the White House that it “threatens our post-pandemic economic recovery, the consequences of which stand to be especially acute in dominant auto manufacturing states.”
What does that mean for car shoppers?
Expect to see an impact on availability as well as higher prices for some car models.
“We are working closely with suppliers to address potential production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation,” Ford spokeswoman Kelli Felker said in an emailed statement.
Other automakers affected by the shortage include GM, Volkswagen, Subaru, Toyota, Nissan, and Fiat Chrysler.
Car shoppers can expect to see an impact in the availability of certain car models due to the chip shortage, as well as a price increase. This would mean that dealerships may also be less likely to offer deals as supplies dwindle.
If you are in the market for a car, it is recommended that you shop now before you have less choices and prices rise over the next two quarters.
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Unexpected Profits was founded by Jeff Dean in 2021. Unexpected Profits is a trends podcast that is committed scouring the news to find emerging trends before they take off. www.unexpectedprofits.com