Before the pandemic, Earl Stewart could count over 300 new cars sitting on the lot of his family’s Toyota dealership in South Florida on any single day. The high inventory meant customers could find the exact model and color they wanted for well below sticker price. But now, Stewart’s lot has just a fraction of the cars he had before, with inventory down to 31 as of Friday.
That’s because a global shortage of semiconductor chips supplied primarily from Southeast Asia—where COVID-19 cases are among the highest in the world—has forced automakers to cut production. Nearly 20 auto factories have stopped or reduced production in recent weeks due to supply chain issues, affecting plants across the globe. At Ford’s Kansas City assembly plant, which builds the F-150 pickup and Transit van, employees were temporarily laid off for one week as they continue to wait for back-ordered chips to become
After an exciting weekend at Radwood Norcal, Car Bibles is back to blogs as usual with updates on project cars, important legal information for tuners, some history, used car commentary, and did we mention project cars?
We had quite a few good ones this week! Our report on California’s smog requirements changing got a lot of traction thanks to a wide share on Reddit, but we had some good updates on our own cars that I hope you’ll dig too.
Car Bibles is generally focused on
As the semiconductor shortage hobbling the global automotive industry has worsened, its cost as a hit to sales has almost doubled to $110 billion, up from an earlier estimate of $61 billion.
That’s the latest assessment of AlixPartners, a global consulting firm closely monitoring the widening crisis. It also now says the world’s carmakers will lose 3.9 million vehicles of production to the chip shortage this year, more than its prediction four months ago of 2.2 million. That’s about 4.6% of the 84.6 million vehicles that AlixPartners had projected in total production for 2021.
Automakers issued warnings in earnings reports in recent weeks that the chip shortage would get worse before it gets better. Ford Motor Co. and General Motors Co. each predicted the second quarter would be the worst of the calamity, as they are forced to idle factories for lack of the essential components. But the