Semiconductor Shortage – Why These Little Silicone Chips are Causing Such a Headache

A lot has changed in the past 18 months. A global pandemic brought the world to a halt and impacted us in ways we never thought possible. From early 2020 the world began shutting down manufacturing and factories paused production with no idea when they would operate again. This started a domino effect which has lead to a vehicle shortage on showroom floors and longer wait times for brand new cars. But what is the real cause of these delays? Semiconductors.

So How Does This Affect My New Car?

During the pandemic, supply and demand shifted. With the majority of workforces pivoting to a work from home model, the surge of people buying monitors, laptops, phones, etc increased. Due to stay at home orders, the demand for cars slowed down, and supply plants transferred their attention to the instant demand. Then the inevitable happened, the plants making the majority of the semiconductors, located in Taiwan, South Korea, and China, had to close down for the safety of the workers and to help stop the spread of COVID-19. By the time the plants were fully operational again, the demand had well surpassed the supply capabilities. Making matters worse, a fire at one of Japan’s biggest factories halted production for a month, further impacting supply. Some semiconductors can take months to produce and when you consider an average internal combustion car uses between 50 – 200 chips and hybrid and electric cars use up to 3,500 chips, that demand is hard to catch up with.

How Long Will it Take to Get My New Car?

Every manufacturer has been impacted by these delays, and with international travel not on the horizon, Australians are looking to holiday at home and take advantage of the beautiful landscapes we have on offer. What’s the best way to see these sights? Road trips, obviously. What’s better than a road trip? A road trip in a brand new car! As you can see there is a common issue here, supply and demand. For some makes and models, there is a 6 – 11 month lead time from ordering your car to having it in your garage.

How Can ProNovate Help?

But this isn’t always the case. There are cars available, you just have to look around and be open to different options. It is not rare to hear people say they waited 4 months for a new Mazda CX-9, but other people waited only 1 week, as long as they were happy with a white car instead of black. ProNovate has a nationwide fleet network that can help find you a car. We will do the work in finding you a car, and if you are flexible and open minded with colours, options, and also range, then we are confident we can help you skip those long waiting times. Not only can you get your car before everyone else but you can also get it cheaper with the fleet discounts that you can obtain with a Novated Lease.

If you want to find out more, get in touch with one of our Consultants for an obligation free quote.

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