Why Is There A New Car Inventory Shortage?

If you’ve been shopping for a vehicle around Red Bank recently, you’ve likely noticed the new car inventory shortage. But, what’s causing the car inventory shortage? Dealer’s lots are emptier than they used to be, in large part, due to the car ship shortage that began in 2020. Learn more about the cause of the automotive chip shortage, and how to get a new car, with the Tom's Ford team below.

What Caused the Car Chip Shortage?

The worldwide automotive industry makes up roughly 15% of the world’s chip demands— with new vehicles requiring 1,400 to 3,000 microchips per year. Unfortunately, recent current events have hindered chip production. These include:

• Trade War Between the Chinese & U.S. Governments-The China-U.S. trade war has made it incredibly difficult for chip producers to export to foreign markets.
• Drought in Taiwan- Taiwan produces 53% of all semiconductors globally. Keeping up with this level of production requires a massive amount of water, which is why the severe drought they experienced drastically cut their production.
• COVID-19 Pandemic- Countless factories were forced to pause production during the pandemic. While factories are working to catch up, the impact of the closures will be felt for a while.

Steps to Improve the Auto Chip Shortage

While the new car inventory shortage won’t disappear overnight, steps are being taken to ramp up chip production outside of Taiwan. While the U.S. and other countries are working to produce new chips as quickly as possible, chip production facilities are required to go through extensive processes to make them clean enough for chip production. That’s because even a tiny speck of dust can cause a chip to fail! In fact, a microchip factory has its air filtered to contain 1,000 times fewer airborne particles than the inside of a hospital surgery room.

Reserve Your 2023 Ford Today at Tom's Ford

While there may be a car inventory shortage, new vehicles can still be found today at Tom's Ford! You’re welcome to browse the inventory on our Keyport lot, or, you can also reserve a new Ford with the help of our sales associates. Reserving a new vehicle allows you to get a vehicle custom-built to your exact style and specifications. Reach out to us to learn more, or drop by our dealership next time you’re in the Middletown and Hazlet area!