The shortage of automotive chips is still impacting the supply
ZUMBROTA, Minnesota (FOX47) – If you’re in the market for a new car, you know the prices are on the rise. A shortage of semiconductor chips has slowed automotive production, weakening supply. Now Ford says a new supply of chips will get more vehicles into dealerships. Thousands of new microphones are waiting for the essential.
âFord and GM have built a lot of trucks, but they’ve parked them outside when this chip becomes available,â said Steve Johnson, president of Zumbrota Ford.
âIt’s mandatory, you have to have it,â said Nick Vreeman, Ford Service Manager at Zumbrota.
Chips for all new cars are hard to find.
â30 years ago we made 80% of the chips in America, now we make 19% of the chips here in America,â Johnson said.
Ford says more chips are available right now, especially for the F-150s, but Zumbrota Ford says it won’t feel the resupply of new vehicles for a while.
âFord gave our allocation for August which is about 33% of what we would normally ask for,â Johnson said.
By the end of the year there will likely be more new cars on the lots.
âThe demand is high now, but I think the supply will also increase. They say August and September should be the low point. Then it should be better from October and beyond, âJohnson said.
So what are fleas actually doing?
âChips are located in computers. Many computers have between 5 and 10 computers, âVreeman said.
âThere is so much technology in vehicles today. There’s lane control, adaptive cruise control, infotainment system on the dash. There are so many more electronic devices on our vehicles, and they are so complex. Johnson said.
“The shortage of chips that we are experiencing right now is the on-board computer chip that makes all the other chips communicate,” Johnson said.
âThey connect everything to run vehicles,â Vreeman said.
Other shortages are partly responsible for this shortage of chips.
âThere is a shortage of truckers. A big part right now is an employee shortage, âVreeman said.
It’s not just the auto industry.
âRight now, all other industries also need chips in their products. Playstations, electronics and gaming devices, âJohnson said.
Despite the low supply of new stocks and high prices. Many dealers and consumers are still thriving with low interest rates and more than ever worthy trades.