If you have browsed for vehicles in person or online, then you may have noticed that prices seem a little higher. You may not be able to find a dealer near you that has the specific model that you are searching for. This is currently the case for many prospective buyers due to the shortage of semiconductor chips, which has limited or halted production of new models for many manufacturers.
While the chip shortage has seemed to affect essentially every major auto manufacturer, there are some that have taken a more impactful blow than others. This review discusses the manufacturers and specific 2021 models that were the most affected by the global chip shortage.
What is causing the chip shortage?
So what is behind the shortage of semiconductor chips? The simplest answer is that within the automotive industry, the demand for the chips increased at a faster rate than the production. Much of which can be attributed to the coronavirus pandemic.
In 2020, the need for semiconductor chips within the automotive industry decreased and the focus was instead on electronic devices within the healthcare industry and other related industries. Fast forward to 2021 and the production and consumer demand for new cars has increased at a rate that was not anticipated. Manufacturers of semiconductor chips are working endlessly to catch up to the demand, but it could take months, if not more than a year, before the situation is resolved.
The car models most likely to be impacted by the chip shortage
Image source: Forbes
Every automotive manufacturer is likely to be impacted significantly by the semiconductor chip shortage. However, there have been some that have taken a bigger hit than others. According to Auto Forecast Solutions, below are the vehicle models that have been the most impacted by the chip shortage. The numbers listed refer to how many fewer vehicles were produced:
- Ford F-Series: 109,710
- Jeep Cherokee: 98,584
- Chevrolet Equinox: 81,833
- Chevrolet Malibu: 56,929
- Ford Explorer: 46,766
- Jeep Compass: 42,195
- Ford Edge: 37,521
- Ford Transit: 26,507
- Chrysler Voyager: 25,728
As shown, the manufacturers most impacted by the global chip shortage are domestic manufacturers. This includes Ford, Jeep, and Chevrolet. However, as mentioned, the chip has impacted essentially every major manufacturer. For example, Volkswagen has produced more than 100,000 fewer vehicles in 2021.
In total, the chip shortage caused 2 million to 5 million fewer vehicles produced. This led to increased prices and limited availability of new vehicles across the board. Along with increased prices of used and rental vehicles as well.
What if I want to buy one of the vehicles that have been the most impacted?
Generally speaking, the reduced production of the vehicles listed above makes it more challenging to purchase at an ideal rate. There are fewer deals available for prospective purchasers and the car prices have risen substantially across the board for new cars, used cars, and rental vehicles. However, this is not to say there are no exceptions to the rule, and securing a fair price may still be possible, although it is certainly far more of a challenge than it has been in previous years.
When will the chip shortage end?
Expert opinions differ on when the chip shortage will actually end. Some believe that the supply will catch up this summer. Other experts anticipate the global chip shortage lasting for all of 2021 and 2022. The most likely scenario is that the situation slowly improves itself and the production of new vehicles for manufacturers slowly begins to increase to the initial estimates. Taking an optimistic viewpoint, there is reason to believe that the chip shortage should end in around six months’ time.
How has the global chip shortage impacted car prices?
Car prices have risen substantially across the board due largely to the chip shortage. Of course, anytime there is massive demand prices are likely to rise. However, the rate of inflation within the automotive industry suggests that it goes beyond simply having more competition for new vehicles. The chip shortage has most certainly played a role in the higher bottom line price of new vehicles. As a result of the increased price of new vehicles, we are also seeing substantial increases in used cars and rental cars as well. Thus, more buyers are opting not to purchase new vehicles due to the higher price point.
What is the best way to handle the chip shortage?
The easy answer is to wait. Of course, this is not an option for individuals that are simply without a dependable vehicle and need one fast. However, those who are in a position to continue driving their current vehicle for several more years should certainly consider doing so. In fact, it is likely a more cost-effective solution to have your car thoroughly serviced rather than trade-in your vehicle to purchase a new one.
For those who simply have no other option but to purchase a new vehicle, you can secure the best deal possible through a thorough search online. Purchasing a used vehicle is likely a more preferable solution to purchasing a new car. This is because you have a much better chance of securing a good deal when purchasing a used vehicle during the car shortage. Be sure to check out the best used car websites for 2021, which still provide you with a good chance of finding a relatively good price for a used vehicle.