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Major Automaker Chip Shortage Issues Continue

Major Automaker Chip Shortage Issues Continue

There’s more impact being felt in the auto industry thanks to the global automaker chip shortage of semiconductors. It seems Nissan, Stellantis, Ford and General Motors have all had to cut production while stocks catch up.

 

If there was ever a time to sell your old car, it’s now. Used car prices are higher than ever thanks to these shortages. Sell your car to a dealership for top prices!

 

Automaker Chip shortage bites

 

Despite semiconductor factories running at maximum capacity, demand is such that companies are still falling behind with their own production.

 

A key casualty of this is the auto industry. Semiconductors are used throughout new cars for almost every feature. Even a single shortage slows, or stops, production until stores can be replenished.

Automakers impacted

 

Nissan, Stellantis, Ford and General Motors have all had to pause production in North America because of those shortages.

 

“Smyrna assembly plant will be down the weeks of Aug. 30 and Sept. 6. Please note, however, that Sept. 6 is a planned non-production day due to the Labor Day holiday. We continue to work closely with our supplier partners to understand supply constraints and mitigate impact to employees, dealers and customers,” said Ly Love-Carter, Nissan’s spokeswoman, in an email.

 

Ford has had to extend the shutdown its Kansas City, Missouri assembly plant. That plant builds the F-150 truck, which is going to hit them hard.

 

Ford’s Oakville plant in Ontario is also being impacted with the Ford Edge and Lincoln Nautilus both seeing delays.

 

Stellantis is extending the shutdown of its Windsor Assembly plant for another two weeks, starting Aug. 30th.

 

General Motors has closed their electric-vehicle assembly plant in Orion, Michigan. A combination of batteries and semiconductor shortages has caused their problems.

 

Other automakers across the world are equally impacted. All of the big names have had to slow or stop production of a range of new cars until the shortage can be addressed.

 

New car sales

 

Production issues has an obvious knock-on effect on new car sales. Sales are down because of lack of stock. Some buyers are content to wait for longer lead times while others are preferring to buy used or keep their current car instead.

 

This has a further knock-on effect on used car sales. More demand from people who would normally buy new and more people keeping their current car means the usual supply of used vehicles is also falling short.

 

One market’s affect on the other isn’t going to be fixed soon either!

 

With no end in sight for the semiconductor shortage this is another new normal we have to get used to.

 

Not good news if you were planning to buy a new car but excellent news if you were planning to sell one.

 

There has never been a better time to sell a used car. Values are higher and dealerships are paying more than at any time before. If you have a spare car or could live without one, selling your car to a dealership could be very lucrative!

 

For any questions or concerns, please don't hesitate to contact us here!

 

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