Global microchip shortage impacting car prices, tech industry | News Headlines

0
85


ST. CHARLES, Mo. (KMOV.com) — A global microchip shortage is having a major impact on several industries. One of the hardest hit is the auto industry, which relies heavily on the chips.

“I think today it’s almost 40 percent of the vehicles operations need the microchip to function so they’re vital,” said Tim Pundmann, sales manager of Pundmann Ford in St. Charles. 

He calls the impact from the microchip shortage “detrimental.”

“When I should typically have close to 300 new cars on the ground, I probably have 50,” said Pundmann. 

This comes at a time when demand for cars is high, something chip manufacturing companies underestimated. 

“What ended up happening is, they kind of didn’t think the demand would still be there so they canceled chip orders, well demand was actually through the roof for vehicles,” said Pundmann. 

The pandemic also shut down chip factories for a while. Now, those factories are backed up trying to pump out product and one in Japan is totally out of commission because of a devastating fire just a few weeks ago. 

This is also creating a ripple effect on the production of phone, laptops, and video game consoles that also require the chips. Samsung even warned of a “serious imbalance” when it comes to chip supply, worried it won’t be able to deliver new phones one time. 

While most of this is not good news, there is a silver lining in the shortage. 

“Used cars are coming at a premium, they’re harder to find,” said Pundmann. 

That means selling your used call right now can get you more money. 

“I think a safe bet would be anywhere from $2,000 to $4,000 depending on what it is. If it is something that was pretty sought after even before this it might be $4,000 to $8,000,” said Pundmann. 

Pundmann said it normally takes between eight and 12 weeks to get a new car in and now it’s taking on average between four and five months.  

Copyright 2021 KMOV (Meredith Corporation). All rights reserved



Leave a Reply