shortage

Carmakers’ chip shortage that caused prices to soar may be ending

Automakers may soon get a lot more of the chips they need to get cars for sale.

Why it matters: Winter weather, a fire and the COVID-19 pandemic have contributed to a shortage in chips that has stalled the production of new cars.

Get market news worthy of your time with Axios Markets. Subscribe for free.

Driving the news: Chip giant Taiwan Semiconductor reported its Q2 earnings on Thursday, and with it announced relief was coming for automakers in need of chips.

  • On a call with analysts, CEO C.C. Wei said its production of micro-controlling units for cars would be up 60% in 2021 compared to last year.

  • “By taking such actions, we expect the automotive component shortage from semiconductors to be greatly reduced for TSMC customers starting this quarter,” he said.

  • Taiwan Semiconductor controls a little over half of the chip production market share as measured by dollar value.

Read More

Chip shortage creates price hikes

In the age of seemingly endless options for cereal, condiments and candies, choice is often taken for granted.

But these days, choice is a luxury when it comes to buying a new or used vehicle.

With the global semiconductor chip shortage hobbling automotive production, vehicle availability is constrained and prices are soaring as automakers are struggling to keep up with demand.

The upshot for consumers shopping for a new or used vehicle during the July 4 holiday weekend is that flexibility is paramount. 

That is, embrace the Rolling Stones philosophy: You can’t always get what you want.

Chip shortage hobbles availability

“The No. 1 thing – and it will be really obvious when people show up at the dealership lot – is there simply won’t be the selection you’re accustomed to,” said Ivan Drury, analyst at car research site Edmunds.

Consumer Reports:These are the 10 most and

Read More

The global chip shortage is leaving car makers stuck in the slow lane

gettyimages-93912739.jpg

This May, car manufacturers produced less than 55,000 vehicles, only half as much as two years ago.


Monty Rakusen / Getty Images

The production of cars in the UK has more than halved compared to the same period before the COVID-19 pandemic, due at least in part to an on-going shortage of chips that are needed to power everything from engine management systems to in-car entertainment. 

According to the Society of Motor Manufacturers and Traders (SMMT), this May car manufacturers produced almost 55,000 vehicles in the UK – a number that, at first glance, seems healthy in comparison to the meagre 5,314 cars that were produced in the same month of the previous year.  

But 2020’s statistics have to be put in context: with the COVID-19 pandemic rapidly gathering pace, factory lines came to a halt as most manufacturers decided to close their facilities altogether, in line with government guidance.

Read More

Car part shortage makes it more difficult to buy off the lot

Charlie Walters, general manager of the Findlay Chrysler Jeep Dodge Ram dealership, said the shortage stems from a series of global challenges.

POST FALLS, Idaho — If you’re looking to purchase and drive a car straight off the dealership lot today, good luck.

A shortage of available parts has slowed manufacturing down by months as reported by our news partner, Coeur d’Alene Press.

During a Post Falls Chamber of Commerce event Wednesday, Charlie Walters, general manager of the Findlay Chrysler Jeep Dodge Ram dealership, said the shortage stems from a series of global challenges that began with COVID-19.

“Back when COVID first hit, all of a sudden, we saw a drop in demand, and no one knew what to expect,” Walters said.

At the time, inventory was high, he said, cars sitting on lots ready for purchase. Once those cars are purchased, they are dealership-owned and financed through what

Read More