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Vehicle availability for 2022: all you need to know about the chip shortage and factory ordering

Vehicle availability for 2022: all you need to know about the chip shortage and factory ordering

If you have noticed that new cars are not being released as frequently as they have been in the previous year, there is a simple explanation for that. For the last year, the automotive industry has been struggling with getting enough chips to put into the new vehicles. These chips play a vital role in all new vehicles. Without this particular chip, automotive production will continue to slow down. So, what exactly is this chip and why is it so important? Keep reading to find out everything that you need to know about the chip shortage and how it is affecting the availability of new vehicles.

 

What Role Does the Chip Play in the Automotive Industry?

What Role Does the Chip Play in the Automotive Industry

 

The chip is actually a semiconductor. This tiny chip essentially controls the amount of current that an electrical device receives. In vehicles, the semiconductor is used to control a wide range of electrical devices, including the infotainment display, the digital instrument cluster, the collision-avoidance system, and much more. With the chip, a vehicle will not be able to operate properly. If an automotive manufacturer does not have a semiconductor to put into a new vehicle, the vehicle cannot be sold.

 

Why is there a Shortage in Chips Today?

Why is there a Shortage in Chips Today

 

There were several things that contributed to the chip shortage. However, many people simply blame the shortage on the Covid-19 pandemic. When Covid-19 first hit, many businesses shut down in order to slow the spread of the virus. This meant that many of the chip production companies closed their doors for a brief period of time. Even though the shutdown was only temporary, it was long enough to affect many other manufacturers that depended on the chip to make their own devices.

 

The semiconductor is not only used in vehicles. Instead, it can be found in many other electrical devices, including game consoles, phones, washing machines, cameras, and televisions. When the pandemic first hit, many countries made their citizens go into lockdown. Now that everyone was having to stay inside of their home for an extended period of time, video games and other devices were in high demand.

 

How has the Chip Shortage Affective Different Automotive Manufacturers?

How has the Chip Shortage Affective Different Automotive Manufacturers

 

The chip shortage has meant that many automotive companies that are based in North America have seen a drastic reduction in the number of cars that they are able to produce each quarter. In fact, Volkswagen has reported that the chip shortage prevented them from producing up to 600,000 vehicles so far. Many experts are predicting that we will see a total reduction of around 7.7 million vehicles on a global scale.

 

When will the Chip Shortage End?

When will the Chip Shortage End

 

There is no clear answer on when we can expect to see things go back to normal. As long as the demand is high and the supply is low, it could take a while before there are enough chips to go around.

 

However, many automotive companies are optimistic about when we can start seeing an improvement in the automotive industry. In fact, some of the automotive manufacturers have already started to see an improvement in production in the fourth quarter.

 

If you are wanting to purchase a new 2022 Dodge model, one of the best ways to ensure that you are able to purchase the model you want is by pre-ordering. If you have any questions about how to pre-order your dream car, please feel free to contact us today.

 

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    Categories: 2022 Inventory