The Global Microchip Shortage – how new cars have been affected

Motor manufacturers around the globe are currently experiencing a shortage of semiconductor microchips which are essential for many of the high tech features in new cars being built. Currently there are not enough semiconductors being made to meet the demand of manufacturing around the world – and it’s not just the automotive sector. Semiconductors, which make computer chips and integrated circuits, are used in just about everything, from phones, televisions, microwaves, to medical equipment and much more. They are also essential for many of the high tech features in new cars being built. This shortage means that lead times of new cars are affected as some manufacturers are now looking at changing the vehicle specification to manage the shortage and others have had to temporarily suspend production of certain models.

The shortage is expected to continue well into 2022, although the impact is certainly lessening. At Tusker, we’re working closely with all the motor manufacturers to ensure we’re aware of all the delays and can communicate them promptly with our drivers.

However, for employees who are looking for a car with a quick delivery time, we’d recommend to look at our Cars in Stock page where we are making sure we have plenty of choice. Although they won’t be built to your exact specification, they will be brand new cars that we have a stock of and can therefore be delivered as soon as we have an order approved and the paperwork returned.

What are microchips and why is there a shortage?

All cars are built to include microchips as they’re like mini computers that control different things within a car like navigation systems, 360 parking cameras, touchscreens and much more. They have the be made in separate dedicated factories due to the production conditions needed (zero dust and super clean) and so can take longer to make than other car parts in a normal situation. With more and more technology requiring microchips even a small delay in manufacturing them can cause a knock on effect. The main reason for the delay in the automotive industry is down to the COVID-19 pandemic. Not only were factories closed and therefore, production halted, but motor manufacturers also suddenly saw a reduction in new car orders and so didn’t need to order as many microchips. Other industries continued to buy and often more than anticipated due to new technologies and consoles being released. So when new car sales picked up again and factories re-opened, motor manufacturers were behind in getting these components ordered and found themselves at the back of a long queue.

How will employees know which cars are affected?

Once an employee is on the Tusker site, they can view the anticipated delivery times on our system before ordering. When a order is placed, and order authorisations have been received, the Tusker team will then confirm the anticipated delivery date and any further delays. You can also check back regularly on the ‘My Car’ page to see the most up to date lead time.

What if an employee needs a car quickly?

We understand that some people may not want or be able to wait for their new car. Once you’ve logged into our site, you can visit our ‘Cars in Stock’ page that shows cars already built and available for delivery once all paperwork and approvals have been received (typically 4 weeks) or cars that are due to be delivered very soon.

Is it only Tusker who are affected by this?

No, this is a global issue that’s affecting the majority of the automotive industry as well as other consumer technology industries too.

How long will the delays last?

The shortage is constantly being addressed and manufacturers are always looking at alternative options to avoid huge production delays and some are more affected than others. However, the global delays are expected to continue well into 2022.