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Car dealerships struggle to meet demand due to the global microchip shortage

"Dealerships, ourselves included are at or less than a 30 day supply," said Giambalvo.

YORK, Pa. — John Giambalvo from Jack Giambalvo Family of Dealerships usually likes to keep 60 to 90 days worth of inventory on the ground.

"Dealerships, ourselves included are at or less than a 30 day supply," said Giambalvo.

That’s because during the pandemic, many of the car manufacturers either slowed down production or  stopped production all together.

"And then, the demand started coming back up and they just aren’t able to ramp up production fast enough to keep up with demand," said Giambalvo.

There are also issues in the supply chain that are causing issues for car manufacturers, but one that has given them the most difficulty is the global microchip shortage.

"There’s so many computers in a new car today and I couldn’t tell you how many, but there’s many, many, many and all these computers and all these modules all take microchip so, they help run everything from a camera to the climate control to engine timing," said Giambalvo

Giambalvo says what car manufacturers are doing is prioritizing vehicles that are in the highest demand.

The shortage of microchips has also impacted car rentals. 

In a statement sent to Fox43, Avis car rental said:

"As we return to a state of normalcy in a post-covid-19 world, we expect larger fluctuations in market demand and customer rental patterns, such as those associated with vacation destinations, and are constantly adjusting our fleet to meet that demand.  we continue to receive new cars in every day and look forward to helping people experience their mobility needs in a safe and efficient way. we suggest renters book and prepay a reservation in advance on our websites, avis.com and budget.com, to reserve a car at the best prices available.” 

 

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