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.
According to Fleet News, almost 95% of fleets surveyed said they were experiencing vehicle delays.
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 email@example.com