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Vehicle availability for 2022: all you need to know about the chip shortage and factory ordering

You may have noticed that new vehicles are not hitting dealerships as fast as they used to. One of the main reasons for this is that there is currently a chip shortage in North America. Many of the automotive manufacturers are hoping to resume normal production soon. However, until more chips are delivered to these manufacturers, production will continue to be slow. So, what are these chips and why are they causing a production delay in the automotive industry? Keep reading to learn more about this unique predicament that the automotive industry is currently having.

What is the Chip and Why is it So Important?

The chip is actually a semiconductor. The semiconductor chip is small, but it actually plays a big role in most modern vehicles. The chip is used to control vital components, including the infotainment system, collision-avoidance systems, and other electronic devices. The chip plays a more vital role in hybrid and all-electric vehicles. Without the semiconductor, a vehicle will not be able to function properly.

Why is There a Chip Shortage?

The recent Covid-19 pandemic played a major role in the chip shortage. Semiconductors are not only used in automobiles but are also used in other electronic devices that people use every day, which include TVs and video game consoles.

In early 2022, when most of the world was in lockdown, many people went out and bought new electronics to help keep them entertained. Suddenly, the demand for these chips outweighed the supply. Also, many of the chip production facilities were closed at the beginning of the pandemic, which helped to contribute to the chip shortage.

How has this Affected the Automotive Industry So Far?

Many automotive factories have had to slow down their production lines dramatically. Some manufacturers have even had to shut down production lines completely for weeks at a time.

Recently, Stellantis said that they have not been able to ship as many Chrysler-fiat vehicles this year. In fact, the shipments were down 27 percent for the entire year of 2021. Ford also saw a 27 percent decrease in customer deliveries, and Volkswagen recently reported that the chip shortage prevented the company from producing close to 600,00 vehicles this year, so far.

When will the Automotive Industry Recover from the Chip Shortage?

There is no clear answer on when we can expect to see things go back to normal. As long as the demand is high and the supply is low, it could take a while before there are enough chips to go around.

However, many automotive companies are optimistic about when we can start seeing an improvement in the automotive industry. In fact, some automotive manufacturers have already started to see an improvement in production in the fourth quarter.

If you are wanting to purchase a new 2022 Chrysler model, one of the best ways to ensure that you are able to purchase the model you want is by pre-ordering. If you have any questions about how to pre-order your dream car, please feel free to contact us today.