Good news for car manufacturers: ‘End chip shortage in sight’

Long delivery times a thing of the past?

Good news for car manufacturers: ‘End chip shortage in sight’

The chip shortage is going in the right direction, according to an American trade association. The expectation is that we will soon go from a shortage of chips to a surplus of chips. That’s probably good news for car delivery times as well.

Already during the corona crisis, delivery times for new cars increased considerably, largely due to shortages of microchips. As a result, cars were delivered later than expected, or in some cases, incomplete cars were delivered awaiting chips. However, the chip shortage of recent years is now almost over, predicts the American industry association Consumer Technology Association (CTA).

The enormous demand for computer chips is decreasing, says researcher Steve Koenig of CTA, the organizer of the CES tech fair in Las Vegas. As a result, the extremely long delivery times are slowly normalizing. These improvements are also related to large investments by chip companies in more production. That seems like good news for the electronics industry, but it could have a downside, thinks Koenig. “We are going from a shortage of chips to a possible oversupply.”

Chip shortage not the only problem

The chip shortage was then felt mainly in the auto sector, which had canceled orders at the start of the corona crisis and then found itself at the back of the queue when car manufacturers wanted to ramp up production again. Long delivery times were the result. The chip crisis is not the only cause of the sometimes long wait for a new car. Disruptions in the supply of parts, first due to the corona crisis and later the war in Ukraine played a role. The question is therefore to what extent a sufficient supply of chips puts an end to long delivery times.

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– Thanks for information from Autoweek.nl

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