ECONOMY

Car deliveries face significant delays

car-deliveries-face-significant-delays

The global shortage of microchips has resulted in delivery delays and shortages in tech-dependent products such as cars in the Greek market.

The concentration of microchip production in a few firms, most in China and Taiwan, the precipitous drop in trade caused by the Covid-19 pandemic and the subsequent explosion in demand from countries such as China have all contributed to microchip scarcity.

The auto industry has been affected by shortages that had already appeared in 2020, in microchips, semiconductors and primary materials, and, one by one, carmakers have announced production cuts in the short term.

Toyota, which had so far tried not to let production be affected by the shortages, announced a few days ago that, starting in September, it will cut production by 40%. This means 140,000 fewer cars and trucks every month. In the UK, semiconductor shortages have been compounded by shortages in personnel because of the rapid spread of Covid-19’s Delta variant, leading to the lowest car production levels since July 1956.

A top manager at a big car importer and trader told Kathimerini of delays in car deliveries of up to six months and estimated that car prices will go up 1-2% this year. “It is not something dramatic, but… if the situation persists, prices will go up further,” the manager said.

Microchip shortages have led to the delivery of vehicles without some components. “We do not miss crucial parts, but, in some cases, we have been missing some extras, such as a navigator,” the manager said. “We will find other suppliers to install the parts ourselves, so that the consumer does not miss them. But this means a delay in delivery,” he added.

Normally, the delivery time of a car in Greece is a month; at present, three, four and even six months have become the norm, even more for luxury and sports cars with more limited production.