Automotive industry, consumers impacted by recent shortages – WHIO TV 7 and WHIO Radio
Those who are in the market for a new car may find it difficult to choose one, as the auto industry currently suffers from two issues.
A relatively new problem is the shortage of a technological element essential for the production of new vehicles: microprocessors.
Mainly made abroad, these electronic chips are as important to a vehicle as a silencer or an engine. It can take up to 500 chips to run a vehicle.
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Dan Hearsch, chief executive of AlixPartners, told News Center 7’s Michael Gordon that the microchip shortage is impacting automakers, suppliers and consumers.
International shortages have driven automakers in the United States to find a way to produce chips domestically, which Hearsch says should be done regardless of the current issues.
“There is no good reason not to have these parts made in the United States versus Taiwan or China because they are not very labor-intensive,” Hearsch said.
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The second problem within the auto industry is the widespread shortage of car inventory.
Jeff Reichard, vice president of Reichard Buick GMC, said the industry shortage is a global problem.
In the United States, however, Reichard said every manufacturer addresses the problem.
The shortage even caused transaction costs to rise, with pickup trucks and sports cars seeing the biggest increase.
The industry interior said the shortage should be resolved by September.
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