Between 2021 and 2022, 14.8 million cars were cut from production, leading to a shortage of new cars and rising prices for both new and used vehicles. This was all due to problems in the global supply chain. Is scarcity the new normal or is there an end in sight?
Automotive news outlet Automoblog recently spoke with Jennifer Strawn, executive vice president of supply chain industry leader Rand Technology to learn about the end of the automotive chip shortage. Some data they discovered 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 into 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 make it easier to rely on microprocessors.
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4 Major Factors Are Causing Continued Microprocessor Shortages: The four major factors causing continued chip shortages are trade tensions between the US and China, Russia’s invasion of Ukraine, back orders, and increased the demand for electric vehicles.
Here’s the full report:
