Auto Chip Shortage

 For several months we have been hearing about the chip shortage. Unfortunately the situation is still on going. Car makers continue to struggle with keeping their production going. Many manufacturers such as GM, Ford, Honda have shut down factories due to the shortage. 

But the fact is Car manufacturers' poor planning caused this issue. In early 2020,when the pandemic started, most car manufacturers expected the demand for cars to go down. In addition many manufacturers were faced with covid outbreaks at their factories. Both of these caused car production to go down and manufacturers cancelled orders with their suppliers. Chip manufacturers were one of them. Due to loss in demand from.the car manufacturers the chip producers were forced to find other opportunities to keep their businesses running. With more people working from home, the tech industry demand skyrocketted. So the chip manufacturers retooled their factories to meet the tech industry needs. However when car manufacturers wanted start production back up, chip manufacturers had deprioritzed them. 

Today chip manufacturers are trying to .eet the new demand but it will be several more months when we could see improvements in the supply chain. Until then car prices will continue to go up, making it a great opportunity for those who have been wanting to get rid of an extra vehicle sitting in their driveway. 

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