Chip

Computer chip shortage amid COVID-19 pandemic leads to low car inventory

SAN FRANCISCO (KGO) — Auto manufacturers can’t buy all the computer chips they need, so the supply of vehicles is tightening.

“It’s not really that they are producing less chips,” says Karl Brauer from the automotive website iSeeCars, “it’s that there are more reasons to produce chips now or more demand for chips.”

Fewer chips means fewer vehicles — new and used — but that doesn’t mean you can’t find the vehicle you want.

“I never thought I would have a luxury vehicle in my life and I walked away with my dream car,” says Lilith Lerma of Antioch.

She thinks the pandemic has made buying a car easier.

“The whole process was fast and seamless,” she says, “and probably the best buying experience I’ve ever had.”

She’s not the only one with a pleasant pandemic buying experience.

RELATED: Consumer Reports: Used car or certified pre-owned?

Bill Miller

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Rental Companies Buy Up Used Cars as Chip Crisis Get Worse

The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.

This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.

“You would never go into auction to buy routine sedans and SUVs,” said Maryann Keller, an independent consultant who used to be on the board of Dollar Thrifty Automotive Group, which is now part of Hertz. “These are special circumstances. There is a shortage of cars.”

The demand is sending used-car costs

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Amazon warns against car industry getting special treatment in efforts to fix chip shortage

Amazon has warned against the car industry receiving special treatment to address the chip shortage crisis that has shut factories around the world.

The technology giant told a review into Joe Biden’s plans to provide billions in subsidies for US chip manufacturing that a wide range of products from data centres to satellites were at risk from the shortage.

“Any government incentives and efforts to diversify the semiconductor supply chain should be made across the board, for access by and for the benefit of all users and customers of semiconductor technology,” the company said in its response to a consultation. 

“No single sector should be favoured over other sectors, as semiconductor technology underlies a large variety of industries.”

The Biden administration is proposing to spend $50bn (£36bn) in subsidies for chip research and manufacturing, an effort to ease the current shortage of chips and to ease reliance on Asia, where

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Car industry could take six months to recover from chip shortage

TipRanks

2 Compelling Dividend Stocks Yielding at Least 8%; Oppenheimer Says ‘Buy’

The crises of the past year – the COVID pandemic, the social lockdowns, the economic shock – are on the wane, and that’s good. However, the crisis post-mortems are rolling in. It’s only natural to compare the current economic crisis to the ‘Great Recession’ of 12 years ago, but as Oppenheimer’s chief investment strategist John Stoltzfus points out, “Considering the differences in what caused the Great Financial Crisis of a little more than 12 years ago… and the current crisis… it’s little wonder that as good as things are when compared to this time last year there remains much to be revealed as to how the exit and the legacy of the pandemic crisis will take shape…” Stoltzfus also believes that the economic data, while suffering some setbacks, is generally resilient. Markets are rising, and that, as Stoltzfus

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