When demand is unexpectedly high for a particular model, the capacity on the factory production line is pushed to its limit and delays begin to occur. A manufacturer is forced to cope with a backlog of orders which can push the delivery lead time back by a few weeks or even months.
Can a retailer charge over MSRP?
- Retailers may frequently charge less than the MSRP, but the price charged depends on the wholesale cost, whether purchased in bulk from the manufacturer or in smaller quantities through a...
When will new car shortage end?
- they were saying that things would get normal towards the end of 2022. “Then it was through 2023. The majority of our partners are now saying this shortage is likely to last into 2024.” Volkswagen will deliver no new electric vehicles (EVs) to new ...
Is chip shortage getting better?
- Now, the U.S. Commerce Secretary is issuing a warning: Without a lot of help, things aren’t getting better any time soon. A survey from the Commerce Department found chip supplies in the U.S. to be dangerously dwindling. In 2019, companies had an average of 40 days’ worth of semiconductors on hand. In 2021, that number dropped to just five.
Is there still a car chip shortage?
- Whereas some automakers have posted positive sales results, they're still figuring out how to cope with the shortage. Chips have been hard to find for over two years, and the shortage is expected to continue throughout 2022.
Even in normal times, though, there are a number of reasons why a new car could be delayed. Sometimes manufacturers underestimate the demand for a new model and end up over-promising and under-delivering. Human error can play a part, too.