The shortage of semiconductor chips is another disruption to the automotive industry, one that was already impacted by the COVID pandemic, the surge in demand for consumer technology, and the recent winter storm. This is further worsened by the recent fire at the Renesas chip plant in Japan, which may take up to a month for them to recover.
A typical car can have more than 100 microprocessors, and these supply disruptions could have major implications for your dealership. Several OEMs are expecting major delays in vehicle production. Recently, Stellanis announced it’s pausing production at 5 North American plants because of the global microchip shortage. Here’s what they mean for your dealership and your customers.
While the microchip shortage and the resulting inventory impact are out of your control, there are 6 simple things you can do right now to reduce its impact on your business.
The microchip shortage is a reminder that the automotive industry is a dynamic and ever-evolving landscape. That’s why it’s important to be flexible in your operations, so you can pivot quickly as current events, global supplies, public policy and new competitors come into play. By following these suggestions now, you can better position your dealership for future success.