Global Microchip Shortage

November 9th, 2021 by
Blue 2022 Volkswagen Taos at dusk

If you have been recently shopping for a car in Harvey, you have probably seen your local dealerships’ inventories emptier than normal. Caused by the automotive chip shortage, the lack of car production is true across various automakers in the world. However, the global microchip shortage doesn’t only impact the automotive industry. Find out more about the importance of this semiconductor chip and how the shortage came to be with the team at Ray Brandt Volkswagen below. 

What is a Semiconductor Chip?

Semiconductor chips are a crucial part of many technologies we use on a daily basis. They are used in electronic circuits to conduct current. Without them, our world will be unrecognizable as our way of communication, transportation, and computation, as we know it, would be different. 

Which Items Use Semiconductor Chips? 

From your smartphones to your washing machine at your Metairie home, many electronics we use require semiconductor chips to work. Other examples include television, LED bulbs, cars, and even technology for advanced medical care. 

What Caused the Shortage? 

As you can see, these chips are essential to how our society operates. However, during the coronavirus pandemic, more and more people are purchasing devices to keep themselves entertained, such as the PlayStation 5 that sold out almost immediately and the popular Nintendo Switch. Plus the demand for certain devices for direct health concerns, such as air purifiers, also grew. With the production of the chip stopped during the pandemic and the complexity of building the chip, the supply failed to keep up with the increasing demand, ultimately leading to the shortage. 

How is the Auto Industry Affected? 

The auto industry is affected by the global microchip shortage the most out of all of the impacted industries. New cars need hundreds of semiconductor chips to build proper essential systems, so with the shortage, many automakers are left to either decrease their production or worse, stop production altogether. This accounts for the lower stock for new models, which in turn also causes the price to increase significantly. 

However, since the new models cost much more now, many dealerships are focusing on used vehicles in their inventory. Some Marrero drivers will find it is the right time to sell or trade in their car as the price for pre-owned cars has increased about 20% to 30%. 

Can I Still Buy a Car from Ray Brandt Volkswagen?

If you are looking for an upgrade near Metairie, you can still shop for your next ride at Ray Brandt Volkswagen. We are working hard to bring in as many new and used vehicles as possible, so you can still have a solid selection to choose from. Browse our inventory online and if you need help finding a perfect fit, be sure to reach out to us and we would be happy to help you out! You can also pre-order your vehicle with our team to find exactly what you need.

Stay Up to Date on Auto News with Ray Brandt Volkswagen 

Now that you know more about the global microchip shortage, feel free to talk to us if you want to understand more auto news. Whether it is worldwide or local news, our team can definitely keep you informed. We can also tell you about news at Ray Brandt Volkswagen if you’d like!


Posted in Auto Industry News