Why Tiny Microchips Are Crippling The Global Auto Industry And Driving Up Prices

While the automotive industry was ravaged early on in the pandemic thanks to lockdown measures and a dramatic decrease in travel, it more recently has begun facing a new problem: a shortage of microchips. Microchips are vital to much of a vehicle’s key functions, such as engine control, transmission, infotainment systems, and more.

StanceAuto StanceAuto
0

Join us on StanceAutoMagsGroup Give our Facebook Page a like and make sure to Follow us on Instagram

Link to Buy our Printed Magazine 

While the automotive industry was ravaged early on in the pandemic thanks to lockdown measures and a dramatic decrease in travel, it more recently has begun facing a new problem: a shortage of microchips. Microchips are vital to much of a vehicle’s key functions, such as engine control, transmission, infotainment systems, and more.

In the last half of 2020 and now in 2021, vehicle sales recovered fairly quickly, faster than automakers anticipated. Suddenly, they were struggling to meet demand. At the same time, chipmakers were experiencing supply shortages and increased demand from other sectors, such as personal electronics. 

With the resulting lack of microchip supply, automakers have been forced to slow production, even on their most popular models. For several automakers, the shortage is expected to cost them $1 billion or more — and even still, the alternatives are worryingly few.

About CNBC: From 'Wall Street' to 'Main Street' to award-winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favourite shows, exclusive video and more.

Connect with CNBC News Online

Get the latest news: https://www.cnbc.com/

Subscribe to CNBC PRO: https://cnb.cx/2NLi9AN

Why Tiny Microchips Are Crippling The Global Auto Industry And Driving Up Prices

What do you think of this Video leave your comments in the comments section at the bottom of the page?

All the Cars in the Online Version of our Magazine will eventually appear in our Fully Printed Magazine, the cars with the most Views, appear sooner so keep sharing your articles with the share buttons at the top of the articles. All of our Magazine can be found on Amazon, they Print and Deliver it, Stance Auto can not be held responsible for the final print, all complaints and returns must be directed to Amazon.

Tags: