HAVOC For Supply & Demand Of Vehicles

The Pandemic has had a huge impact on the supply and demand of vehicles.

Fleets face increased costs as leads time lengthen for both cars and vans as manufacturers struggle to cope with the global semi-conductor shortage.

Every car and van maker is being impacted by the computer chip crisis, with some delivery times for cars especially lengthening from three to six months and many new vans not expected to be delivered until 2022!

Vehicle production lines have been temporarily halted, focus has been shifted to high demand vehicles and some options are not being offered.

Furthermore., with the auto industry facing tough new emissions target, lower emitting models have been prioritised in some cases.

End-user fleets, the leasing industry and daily rental companies have also been warned that the semiconductor shortage could stretch into next year, leaving customers frustrated.

Chip Demand

Many companies had cut orders for semiconductors, believing the pandemic would negatively impact demand, which led suppliers to reduce capacity.

However this was not the case the global demand for semiconductors grew by 15% last year, with global manufacturing based on a handful of factories.

It is an issue for the auto industry as there can be between 50-1000 semiconductors in a vehicle dependent on its complexity. The computer chips feature in everything from infotainment systems and brake sensors to parking cameras and power steering.

Options Removed

The manufacturer has cut options on vehicles in some cases, with digital instruments on the current 308 being replaced by analogue, while on certain Citroen models, the optional wireless phone charging feature is also temporarily unavailable. In addition the wireless phone charging feature is also temporarily unavailable for certain Vauxhall Crossland and Grandland Models.

Extended Lead Times

The Association of Fleet Professionals (AFP) recently warned that measures may need to be adopted by fleets to cope with the emerging shortage of semiconductors disrupting car and van production.

➡️ Extension of lead times across most manufacturers

➡️ Industry average was 3 months lead time, new average is 6 – 9 months across cars and light commercial vehicles

➡️ Lease extensions are being deployed

➡️ Delays are impacting electrification plans

Plan Ahead

You may not be considering changing for van for at least another 12 months, but in light of the current backlog in the automotive industry we would urge consumers to consider placing their orders sooner rather than later.

We hope this helps,  ill next time guys!

 

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