Why Is The Global Auto Chip Shortage Delaying Car Production?

The auto industry is set to lose

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Millions of vehicles are left unfinished and stuck in warehouses. Manufacturers

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Experts predict that 1.28M fewer vehicles will be made in the US this year due to the chip shortage.

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The low auto inventory and high demand mean that the average driver must spend more to buy a brand new or used car.

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So why is there a chip shortage in the auto industry?

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When COVID-19 hit, automakers cancelled their orders on computer chips, thinking that their sales would nosedive.

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Sales did plummet, but the industry recovered quickly.

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The chips that go into vehicles are similar to the ones used in computers, mobile phones, and game consoles.

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The average vehicle has about

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So without chips, automakers can’t complete vehicles.

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But how long will this crisis last?

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So if you're looking to buy a new ride, you might have to wait a little longer for prices to return to normal and your dream car to roll out.

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But if you simply want to fix a few bugs in your car caused by damaged computer chips, CarParts.com can help.

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Why Is The Global Auto Chip Shortage Delaying Car Production?

Why Is The Global Auto Chip Shortage Delaying Car Production?

The auto industry is set to lose

$450B

$450B

in global sales by the end of 2022.

Millions of vehicles are left unfinished and stuck in warehouses. Manufacturers

delayed

delayed

and were

production cuts.

production cuts.

rollouts

rollouts

forced to make

Experts predict that 1.28M fewer vehicles will be made in the US this year due to the chip shortage.

The low auto inventory and high demand mean that the average driver must spend more to buy a brand new or used car.

So why is there a chip shortage in the auto industry?

Well, the pandemic has a lot to do with it, and here’s why:

When COVID-19 hit, automakers cancelled their orders on computer chips, thinking that their sales would nosedive.

Sales did plummet, but the industry recovered quickly.

But by the time automakers needed more chips to make their vehicles, other tech industries have already claimed most of the supplies.

The chips that go into vehicles are similar to the ones used in computers, mobile phones, and game consoles.

These products were in demand during the height of the pandemic.

The average vehicle has about

1200 chips.

1200 chips.

Each has

its own software and configuration.

So without chips, automakers can’t complete vehicles.

To keep the business running, some brands have begun to rewrite the software on pre-existing chips, resulting in limited available features in some models.

But how long will this crisis last?

Experts predict that the availability of computer chips will return to pre-COVID levels in

2024

So if you're looking to buy a new ride, you might have to wait a little longer for prices to return to normal and your dream car to roll out.

But if you simply want to fix a few bugs in your car caused by damaged computer chips, CarParts.com can help.

We stock top-of-the-line control modules for your repair needs.

Shop Now