Why Are Car Dealership Lots So Empty?

Empty Car Dealership Lot During Chip Shortage

Are you in the market for a new vehicle? If so you may be facing some of the same challenges that millions of Canadian vehicle shoppers are experiencing right now - a lack of inventory due to a microchip shortage in the automotive industry. Whether you're situated here in Southwestern Ontario, or out on the west coast, all North American automotive dealerships are facing the same burning question: What are we going to sell our customers?

What are Microchips used for? 

Microchips are used in a wide variety of products around the globe. In the automotive industry microchips are used in vehicles for electronic purposes. Anything from safety features in your vehicle (automatic stop/start, following distance indicators, etc.) to the apps found in your vehicle's colour touchscreen interface.

What caused the Automotive Microchip Shortage?

The short answer is the global COVID-19 pandemic, but it goes beyond that. During the height of the pandemic the demand for electronic devices skyrocketed. So many people across the globe we're restricted to being indoors at home. Thus the demand for streaming devices to keep themselves occupied.

When the pandemic started in 2020 car companies started cancelling orders on microchips after talks about the economy taking a hit. Many car manufacturers underestimated the demand. This allowed for microchip plants to switch their capabilities to making chips for consumer goods, such as devices. The demand for vehicles actually went up during the pandemic, and car companies quickly started to panic. This is where the shortage of car microchips began.

Source: Popular Science - Understanding the global chip shortage

How to increase your chances of finding a New Vehicle:

We get it, finding a new vehicle during this time can be extremely difficult. But your dealer is here to help. Here at Huron Motor Products the earlier you contact us to put your name in for a vehicle, the earlier we can tag a future vehicle coming in as yours.

We will also do whatever is in our power to find your vehicle for you. Whether that's ordering one for you, or finding one on another dealer's lot.

Browse our current online inventory here.