What is Causing the Chip Shortage

Shopping for a new vehicle these days can be a bit daunting with news of a chip shortage that’s slowed new vehicle production. What is the chip shortage? What does it mean for new car shoppers in the Bloomington area? The chip shortage is a complicated situation in which Covid-19, supply chain disruptions, and huge market demand for products with semiconductor chips have merged to cause a shortage. Since semiconductor chips are used in just about every electronic product, from cars to washing machines to phones and beyond, the chip shortage has affected just about every corner of the marker. Learn more about what the chip shortage means for cars with Suburban Chevrolet. 

What is Causing the Chip Shortage? 

The chip shortage extends far beyond Minnetonka. It’s a global issue that’s affecting many manufacturing realms. During the Covid-19 lockdown sales of electronic devices and home appliances that use chips skyrocketed, while factories closed, creating a chip deficit. Factories are still trying to catch up from that time. 

What is the Chip Shortage for Cars? 

Your Hopkins vehicle contains hundreds of semiconductor chips that impact every part of your vehicle. The lack of chips has made it impossible to make enough new vehicles to keep up with customer demand. With high demand and low supply, new car prices are gone up. While you can still buy a new car if you need one, it’s a really good time to opt to trade in your old car, since dealerships like Suburban Chevrolet are looking to increase their inventories. 

How Long Will the Chip Shortage Last?

The news is promising on this front. Economic experts pointed to signs that factories are catching up in late summer, 2022. Demand is still high, so it’ll still take some time for production to get up to speed. That’s predicted to happen by the end of 2023 with shortages easing along the way. You can still purchase a new car between now and then, but it’s a great time to choose a certified pre-owned or used car instead. 

Learn More About Buying a Car with Suburban Chevrolet

We want to make it as easy as possible for you to buy a car at Suburban Chevrolet. That’s why we offer our car-buying tips, with up-to-date information about the financial end of the buying process. Stay in the loop with us!