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Semi-Conductor Shortage, what are your options?

You are probably aware that there is a global shortage of semiconductors impacting fleet decision-makers, and it is expected that this impact will have a greater impact than the pandemic on the automotive industry.


Car and van manufacturers have extended their delivery times, resulting in franchise dealers being either out of or low on stock, to the point some are selling the vehicles in their showroom, leaving gaping voids in now empty dealerships.



Dependent on the build, some vehicles require up to 1,000 semiconductors, which means an increase on price for this one component will quickly make the vehicle unsustainable to produce. The reasons for the shortage come from not just the pandemic and the expected lower demand but also from power outages in Texas due to the storms, where one major factory is based, and a fire at another major semiconductor factory in Japan.


In addition to the above, manufacturing cars in a COVID safe environment, reduced staff numbers due to self-isolation, the blockage of Suez Canal and closures of some ports has only compounded the problems.


You may be sat wondering where we go from here, how long will it take for me to acquire a new vehicle for my fleet? Will we see a large increase in prices like what has happened with building materials? At this point, we encourage you to pick up the phone and talk this through with your dedicated representative from TCH Leasing.


If you’re a new customer concerned about how you will manage your fleet through this shortage, please contact the TCH Leasing team today on info@tchleasing.co.uk

 
 
 

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Copyright © 2022 TCH Leasing. All Rights Reserved. Registered Office: T.C. Harrison 1960 Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH. Registration Number: 648847. VAT Registration Number: 172 5867 36. T. C. Harrison 1960 Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH acts as a credit broker in relation to financial products and not a lender. For customers requiring finance, we can introduce you to a small number of carefully selected credit providers who may be able to offer you different finance products to suit your needs, subject to assessment of your personal circumstances. You are not obliged to use these finance products which may have different interest rates and charges. A lender we introduce will typically provide us with a commission for the work that we do, which is agreed in advance and does not vary with the interest rate or the amount financed. Different lenders we work with may pay commission at different rates. We are only able to offer finance products from the providers we work with. T. C. Harrison 1960 Limited is authorised and regulated by the Financial Conduct Authority. FCA Reg. No. 664529.

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