CAR SHORTAGE: Amid microchip shortage, auto dealers warn they could have empty lots by July
DENVER (KDVR) – If you’re in the market for a new car, you won’t find the typical Memorial Day deals this weekend. You might even have a hard time finding the car you want.
Inventory is at an all time high worldwide, thanks to a shortage of microchips. Some dealers say they will be completely out of cars by the end of July.
It is a historic problem for the auto industry. A fire at a Japanese microchip manufacturing plant has slowed down production of new cars here in the United States
“We haven’t had such an intense supply product shortage in automotive history,” said Tim Jackson, president and CEO of the Colorado Auto Dealers Association.
Dealers like Freeway Ford in Denver say their inventory is about 10% of what it normally is, and depending on how things are now, they could be out of cars in a month or two.
“Before, a person came to ask for a car of a certain color. If we didn’t have it, we could go to another dealership and do a trade-in with a dealership, ”said Anthony Testa of Freeway Ford. “Since everyone is in the same situation as us right now, this is not happening. What we have is what we have. We are totally dependent on the people who bring in trades, buy in the streets, keep everyone at work. “
According to the Colorado Auto Dealers Association, some brands are more affected than others.
“For example, Toyota had more stock in stock instead of ordering just-in-time fashion,” Jackson said.
But experts predict that all brands will sell with no real solution in sight.
“It will take some time to get out of this problem, and the estimates that I continue to see and hear are up to two years,” Jackson said.
“I know Dodge, Ford and the other big manufacturers across the country are trying to work together to find a solution, but there isn’t one yet. And with the backlog, it will be a year or two before we catch up, ”Testa said.
Dealers are concerned about fulfilling customer orders, but they are also concerned about their employees and the employees of their suppliers.
“We have already called suppliers to tell us that they are reducing their working hours because they have nothing to do. We’re not just talking about a thousand, ten thousand, a hundred thousand. We are talking about millions of jobs across the country at risk, unless that is fixed, ”Testa said.
The best advice for consumers: don’t wait.
“If you want a new vehicle, buy as soon as possible, because there is nothing else to come,” Testa said.
This drives up the demand and prices for used cars. If you have a aftermarket car, especially a late model used car, they are worth a lot of money, then maybe now is the time to sell them.
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