Warnings are being issued to fleet decision-makers that the global semiconductor shortage will outlast the coronavirus pandemic…
Semiconductor Woes To Outlast Covid
The global semiconductor shortage may have been caused by the coronavirus pandemic, but it won’t be going away when it’s finally dealt with. That’s the warning being issued by vehicle software company VNC Automotive. As it stands, practically every manufacturer of cars and vans is running low on vital computer chips. The consequence of this has been extensive delivery times for vehicles, with some being increased by three to six months.
According to a Fleet News poll, 95% of fleets have reported that they’re facing serious delays. Production lines have also come to a halt in many instances, with manufacturers prioritising high-demand models.
Tom Blackie, founder and CEO of VNC Automotive, commented on the situation. He said, “in conversations with clients and suppliers, it’s become clear that the effects of the semiconductor shortage will long outlast the pandemic; and will potentially have a far more serious impact on sales and future development”. He added, “we’re even seeing vehicle buyers and fleet operators having to consider purchasing models that aren’t on their preferred lists because that’s all that’s available”.
Communication Is Key
Whilst there’s no easy way for fleets to navigate chronic shortages, there are steps that can be taken to mitigate the disruption. Neil Wilson, Ford’s fleet director, told Fleet News that clear and communication is now more important than ever. He said, “the situation is fluid. But customers need transparency to be able to plan, which means keeping lines of communication open. We will have to make product changes to protect lead times”.
He added, “I think the issue will be around for a whole – probably until Q1 next year. It will ease, but there will be challenges going forward and we have to be good at reacting to those challenges. Lead times are different per model; some LCVs are into next year if you order now”.
Apply CAZ Restrictions To Major Roads, Says Manchester Mayor – https://autoservefleet.co.uk/latest-news/apply-caz-restrictions-to-major-roads-says-manchester-mayor/
Rivian May Build Its All-Electric 4x4s At A New Factory In The UK – https://autoserve.co.uk/motoring-news/rivian-may-build-its-all-electric-4x4s-at-a-new-factory-in-the-uk/