When Will the Global Chip Shortage End? There is an ANSWER

When Will the Global Chip Shortage End? There is an ANSWER

welcome back to the channel i’m lauren fix the number one question i get in my comments is when is this global chip shortage going to end well no one can answer that specifically but the impact is plaguing automakers worse than we even thought car dealers have empty parking lots consumers face limited options on new vehicle purchases and buyers must wait and wait for new vehicles or look at used vehicles toyota is cutting production by 40 in september ford is idling f-150 production and gm is selling vehicles without start stop technology and wireless charging pads and every car brand is scrambling to reallocate chips to the more popular vehicles this is a real issue and it impacts sales profits jobs future production and this will impact the economy tens of thousands of new 2021 vehicles are sitting in parking lots awaiting semiconductor chips before they can be shipped to dealers and then to you i’ll explain everything you need to know about this chip shortage and when it may end this is your first time the channel we give you more than car reviews and first looks of new vehicles we give you car smarts because knowledge is power make sure to subscribe and click that little bell so you don’t miss anything why do we have this chip shortage the chip shortage is a result of the covet 19 pandemic which increased demand for personal electronics such as cell phones tablets laptops computers for working at home and school at home and all of those types of chips are used to the point where production could not keep up with the pace of demand the 5g rollout and continuing growth in cloud computing quickly gobbled up the capacity that automakers had freed up because they stopped production because in march of 2020 the global pandemic prompted automakers and suppliers and car dealerships to close down the automakers quickly cancelled orders for parts with computer chips thinking auto sales would nosedive while sales of new cars did plummet initially but then quickly rebounded with pent-up demand and zero percent financing offers and dealers figured out how to sell vehicles to you online offering home pickup and delivery and the factory started back up the stronger demand came with it and now they’re in a pickle this is a problem when the demand for new vehicles outpaces production and they haven’t caught up yet by the time car makers realized people still wanted to buy their cars they found themselves at the back of the line for chips that they really truly needed how many computer chips are in a car that depends on the vehicle a new vehicle can have up to a hundred of these semiconductor chips they’re used and needed in components from safety systems touch screens brakes transmission and even key fobs and the current cars range from about 30 on a pretty simple car to 100 on a luxury car manufacturers are selling 17 million cars per year and that’s not going to happen because of global chip shortage that brings us down to about 15 million for 2021 and that is a huge issue you can get more car smarts in my book lauren fix’s guide to loving your car the link is down below so here’s another piece of the puzzle and this is from bloomberg news there are companies in china that have made the chip shortage even worse by hoarding and inflating prices that have remained silent throughout this whole thing they’ve been hoarding materials for profit and that’s no strange phenomenon from asia’s biggest economy there are numerous examples of goods being sold at vastly elevated prices including car chips and industry insiders state that the average price of an auto chip has soared between 10 and 20 times yet they’re still hard to get car makers are living in a persistent panic due to the likeliness that an absence of a single kind of tiny little semiconductor chip could lead to a production stoppage particularly considering smart cars use 1700 chips on average in extreme circumstances automakers have had to make the cars without these precious components and store them waiting for the chips to be delivered for final assembly another strategy has been to prioritize high margin vehicles and make those with what chips they’re available here’s the bottom line a variety of analysts agree that most problematic shortages will begin to ease in the third or fourth quarter of 2021 though it could take into mid 2022 for those resulting ships to work their way through the supply chain to the products and get cars to lots the supply relief will not be coming from big national investments like the news talks about like from south korea or the united states or even europe but from older chip fabrication plants and foundries that are running old processes that are not so cutting edge but comparatively they will be able to produce products and get them out as for china they’re pressuring the us government to ease the tariffs that the trump administration put into place on their goods coming into the u.s and since there have been no relief they’re on a squeeze until they get what they want and they’re going to give us less and less chips here in the united states and that’s part of the problem if you got value from this video give it a like and subscribe for more videos like this one if you’ve got additional questions and i’m sure you have some questions and comments put that down below and i’ll be happy to start the conversation because i think that you need to get some answers to these problems so you know what to do follow me on all forms of social media at laurenfix stands top of some of the newest vehicles coming out and there’s more information on our website carcoachreports.com it’s in english and in spanish and check out our podcast total car score it’s available on all platforms we’re having a lot of fun and we’d love you to join us thank you so much for watching and we’ll see you next week you
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When Will the Global Chip Shortage End? There is an ANSWER

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