Global Chip Shortage Makes It Tough to Buy Certain Cars

A major chip manufacturer says shortage could stretch into 2023. CR offers expert advice on how to navigate the current car market.



The global semiconductor shortage continues to squeeze the supply of microchips used to manufacture everything from cars to robotic vacuum cleaners, and it’s wreaking havoc on the auto industry. Almost every manufacturer has faced production delays and temporary shutdowns as they wait for the chips they need to finish building cars on the assembly line, with the latest a gloomy announcement from General Motors that it would pause production at most of its factories for anywhere from a week to several weeks during the next month or so.

An ever-tighter supply of new cars means consumers can expect not to find deals—or even cars, in some cases—during traditional auto sales weekends like Labor Day.

“There is very little on dealer lots to actually sell,” says Sam Abuelsamid, an analyst at Guidehouse Insights, which tracks the automotive industry. “If you anticipate needing a new car in the next six months, it’s probably best not to wait. Go ahead and place a factory order now.”

Following that advice, he says, your car may arrive just in time.

“Odds are there won’t be much to choose from otherwise,” he says.

Abuelsamid’s dire forecast echoes comments made by Patrick Gelsinger, CEO of Intel, one of the largest semiconductor manufacturers, at the company’s July earnings webcast.

“It will take another one to two years before the industry can catch up with the demand,” he said to investors.

All new cars are built with a plethora of microchips onboard to control everything from window motors to navigation systems, and the auto manufacturing industry has been hard hit as chip shortages have caused production slowdowns. For consumers hungry for new cars, that means there are fewer of them available. Buying a car right now—whether new or used—is more difficult than usual.

So you have three choices: Look at models you weren’t previously considering, hold off on buying, or fix your old car if it’s in rough shape.

Jake Fisher, senior director of Consumer Reports’ Auto Test Center, recommends holding off until the market has shifted in the buyer’s favor. “Now is a terrible time to buy a car, so it’s probably best to avoid it if you can,” he says.

https://www.consumerreports.org/buyi...s-a8160576456/