Provide of automobiles prone to turn into limited because of chip scarcity, dealership warns


The provision of automobiles on the market might be limited later this yr on account of the worldwide scarcity of semiconductor chips, a number one motor dealership has warned.

Pendragon, which trades beneath manufacturers together with Evans Halshaw and Stratstone, is the most recent to focus on how the lack may just quickly clear out thru to consumer-facing companies.

It provides to equivalent warnings from opponents Inchcape and Vertu Motors.

The firm has factories in Halewood, Solihull, Castle Bromwich and Wolverhampton
JLR briefly suspended manufacturing previous this yr because of a scarcity of portions

In a buying and selling replace – through which it highlighted sturdy gross sales in Might and June – Pendragon mentioned that “the level of the have an effect on of the well-publicised semi-conductor chip scarcity isn’t but transparent”.

However the staff added: “It’s changing into more and more obvious there may be prone to be some restriction of provide throughout the second-half of FY21 [full-year 2021], with automobile order instances already being prolonged.”

Pendragon additionally highlighted provide constraints and pent-up call for within the used automobile marketplace.

Automobile makers the world over from Jaguar Land Rover to Ford were grappling with a loss of provide of semiconductor chips for months, prompting brief shutdowns and decreased output.

Previous this month, the United Kingdom’s Society for Motor Producers and Buyers (SMMT) mentioned the lack used to be hampering the business’s restoration from the coronavirus disaster, with UK automobile manufacturing in Might greater than 50% less than pre-pandemic ranges in 2019.

Now, consumer-facing automobile companies are beginning to really feel the pinch too.

Ultimate week, every other automobile broker, Vertu Motors, mentioned a tightening of car provide because of previously-flagged part shortages used to be “more and more obvious”.

It added: “The anticipated time between order and supply of latest automobiles to shoppers for sure of the crowd’s franchises is now seeing elongation.”

Previous this month, Inchcape highlighted uncertainty over “problems in the case of provide because of shortages of semi-conductors”.

Some other rival, Lookers, mentioned in an replace this week – with out bringing up the chip scarcity – that limited provide of latest and used automobiles were “tightening in fresh weeks”.


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