Semiconductor

Car sales, used car prices impacted by semiconductor chip shortage

The economy continues to rebound from the COVID-19 pandemic, but with the ongoing semiconductor chip shortage, many are traveling far and wide just to get the car they desire. It doesn’t matter whether a vehicle is new or used, dealerships are running on empty. 

Nearly 10% of vehicle shoppers traveled out of state to purchase the ride they wanted, according to a new survey by Cars.com, an online automotive marketplace. Of the 12,000 respondents, 56% bought a new vehicle, while 43% bought a used vehicle.

A shortage of computer chips has caused a number of automotive factories to shut down temporarily in recent months, as they can’t finish building new vehicles without adequate parts. 

► Car rental delivery?: Uber Rent looks to shake up the rental car industry.

► Average age of vehicles at all-time high: Cars, trucks, SUVs getting older as used car prices soar

Those issues have contributed

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Semiconductor shortage halts auto factories

The Santa Clara, Calif.-headquartered company did its best to ramp up production for car manufacturers at its three big factories in the United States, Germany and Singapore, Caulfield said in an interview. But its efforts alone couldn’t fix a supply problem that had been building for months as an unprecedented surge of demand far outstripped supplies across the globe, leaving manufacturers of all kinds in the lurch.

The shortages have forced General Motors and Ford to slash production in three states as well as in Canada and Mexico, threatening jobs at the auto companies and their suppliers. The White House has already leaned on big chip producers and their host nations, including Taiwan, to increase output, but on Friday, governors from eight states urged President Biden to “redouble those efforts,” warning of a “growing list of automakers, suppliers, and dealers negatively affected by the shortage.”

Semiconductors are the brains behind

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The Semiconductor Shortage Has Come for the Auto Industry

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The ongoing semiconductor shortage isn’t just hitting big-name tech companies like AMD, Intel, and Nvidia. According to multiple automotive manufacturers, the general manufacturing problems hitting the industry are now meaningfully slowing vehicle production.

“This is absolutely an industry issue,” Toyota spokesman Scott Vazin told the AP. “We are evaluating the supply constraint of semiconductors and developing countermeasures to minimize the impact to production.”

This is separate from the COVID-related issues that caused car manufacturers to idle facilities throughout 2020, and it’s creating constraints on companies as they attempt to bring factories back online. Toyota has slowed production on the Tundra, Ford pulled in some planned downtime for its Louisville facility, Fiat Chrysler has temporarily closed some factories, and Volkswagen has announced it’s facing component shortages and may slow production for this reason. Nissan hasn’t

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