In June last year we wrote a blog on the impact the global microchip shortage was having on the automotive industry. In economics terms, the car industry relies on the ‘just in time’ (JIT) supply chain – and very limited spare capacity is contributing to continued new car delays.
The semi-conductor is a small piece of technology which is a key component within vehicle manufacturing, with the average car using between 50-1,000. While many manufacturing plants are now returning to pre-pandemic levels of production, the ongoing lack of semi-conductors is having a major impact on delivery timescales, and we are seeing ongoing delays.
What does this all mean for you?
When will things return to normal?
At the moment we anticipate the situation to continue throughout most of 2022 and potentially beyond. We are starting to see some brands deliver faster, but others taking longer than anticipated. Current delivery times can be viewed in a recent blog.
Can I extend my current lease?
You may be in a position to extend your lease while you wait for your new vehicle to be delivered. We recommend you don’t leave this until the last minute by getting in touch with our team as soon as possible to discuss your options.
Are there similar issues if I need to do a short-term rental?
Alike many industries, the car rental sector is also being affected. They have similar issues with a lack of new car stock, and as such pricing and availability is being affected. You may end up with a slightly older vehicle or one that isn’t quite within your requirements. We recommend getting in touch as early as possible with your preferred supplier.
Will you get the vehicle you ordered?
If there are any potential issues with the vehicle you have ordered, our Client Services team will be in touch to chat them through. We liaise with our suppliers on a daily basis to find out the most up to date information and keep our clients informed at every step of their journey.
