If you’ve been shopping for a new vehicle in Peoria or elsewhere, you might have noticed that some selections are a bit depleted. That’s because there’s a semiconductor chip shortage, which you might have heard about in the news. What is the chip shortage, and why is there a chip shortage? It’s a complex situation that’s connected to the Covid-19 pandemic, supply chain disruptions, and the huge market demand for chips, which are used in just about any electronic device from your washing machine to cell phones to cars. Learn more about the chip shortage and how the chip shortage affects cars with Mike Murphy Ford.
So, how did this happen in the first place? The reasons why there is a chip shortage affecting East Peoria come down to more people buying electronics during the pandemic coupled with the time it takes to make enough chips to keep up with production of other goods, especially when factories were closed due to lockdown. Factories like the Ford F-150 plant in Louisville, KY, couldn’t produce as many chips as they did before, which is why there is a chip shortage.
When a new car is built for driving in Pekin, it has hundreds of semiconductor chips. Without an adequate stock of chips, automotive factories have been forced to slow production, meaning fewer new cars have been rolling out of factories worldwide. This has caused price increased on new vehicles, too. This is why it’s a great time to trade in you old car for a great price, since dealerships are looking for inventory.
As of press time in June, 2022, the chip shortage for car was showing signs of improvement. Demand remains high and chip factories are working hard to keep up. Things should level out and the chip shortage should end by the end of 2023. Does this mean you shouldn’t plan on buying a car in that time? Of course not! The premium prices dealerships are paying for trade-ins will counteract some of the price increases, and there are still vehicles available, especially if you’re interested in buying a used or certified pre-owned vehicle.
If you do want to purchase a vehicle during the chip shortage, turn to Mike Murphy Ford. Not only do we have ample inventory, we want to help you save money in these trying times. Shop our new and used vehicle specials for excellent mark-downs and deals!
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