The Auto Chip Shortage Remains, But It May Be Improving: New Report
Between 2021 and 2022, 14.8 Million cars were cut from production, causing shortages of new cars and a rise in prices for both new and used vehicles. All this was due to global supply chain issues. Are shortages the new normal, or is there an end in sight?
Automotive news outlet, Automoblog recently spoke with Jennifer Strawn, an executive Vice President with supply chain industry leader Rand Technology to gain insight into the vehicle chip shortages end. Some information they uncovered was:
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20% of supply chain experts believe the shortage will last beyond 2023: Relief is coming, but most experts (45%) believe it won’t be until well past 2024.
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Automakers like BMW and Mercedes-Benz are removing features from cars: Automakers are removing features like parking assist and wireless phone charging from their cars to ease reliance on microprocessors.
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4 major factors are leading to the continued shortage of microprocessors: The four major factors causing a continued shortage of chips are trade tensions between the US and China, the Russian invasion of Ukraine, backorders, and increased demand from EVs.
