Why Is There a Chip Shortage?

2021 Jeep Grand Wagoneer


The automotive chip shortage has been impacting the automotive industry since the beginning of the pandemic. So, if you’re looking for a new car around Dayton, you might be wondering what exactly a car chip shortage is, and how it will affect your vehicle purchase. Learn more about the automotive chip shortage with the experts at New Carlisle Chrysler Jeep Dodge Ram! For more information, feel free to contact us anytime!

The automotive chip shortage is the direct result of restrictions being put in place worldwide due to the COVID-19 pandemic. This is affecting the manufacturing of new vehicles, as the chips cannot be made quick enough to keep up with demand; therefore, new vehicles are sparse and prices are increasing. However, if you’re looking for a new vehicle around Springfield, the team at New Carlisle Chrysler Jeep Dodge Ram can help you find the vehicle you’re looking for.

Why Is There a Chip Shortage?

So, why is there a chip shortage? The chip shortage is due to the increase in demand for certain items, such as electronics and appliances, that use the semiconductor chips to operate. Restrictions were put into effect worldwide that only allowed factories to produce the chips at half capacity, or forced them to shut down production altogether.

Another reason for the car chip shortage is the sheer amount of time needed to properly manufacture the semiconductor chip. The chips can only be produced in a sterile lab to ensure that each is completely free of dust or dirt. Furthermore, these chips are tiny and very complex. The worldwide production restrictions led to the semiconductor chip shortage and slowed the production of new vehicles — leaving dealerships scrambling to fill their inventory.

How the Chip Shortage Has Impacted New & Used Vehicles for Sale Near Dayton 

Although many industries have been affected by the restrictions caused by the pandemic, vehicles require hundreds of microchips. Manufacturers responded by limiting new vehicle production, which is why it’s become so difficult to find a new vehicle at New Carlisle dealerships. Limited supply has led to skyrocketing prices, making it difficult for many drivers to find a vehicle that fits their budget.

Used vehicles have become extremely valuable for New Carlisle dealerships, and many are purchasing more used vehicles to fill their inventory. This has caused the price of used vehicles to increase as well; however, those looking to trade-in their vehicle could receive a higher offer than usual. 

How Long Will the Chip Shortage Last?

Due to a decrease in COVID-19 cases, the automotive industry should soon begin recovering from the chip shortage. Instances such as vaccinations and more lenient restrictions have resumed production at many factories worldwide.

Does New Carlisle Chrysler Jeep Dodge Ram Still Have Vehicles for Sale?

Yes! The hardworking people at New Carlisle Chrysler Jeep Dodge Ram are working tirelessly to fill our inventory to provide for our valued customers. If you’re looking for a new vehicle, come stop by our finance center to get the best monthly payments to fit your lifestyle.

Buy Your Next New or Used Vehicle at New Carlisle Chrysler Jeep Dodge Ram!

Now that you know more about the car chip shortage, stop by New Carlisle Chrysler Jeep Dodge Ram if you have any questions. Feel free to check out our new and used inventory, and apply for financing online to start the buying process. Be sure to use our new vehicle specials to save near Huber Heights!

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