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.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.