The global chip shortage is leaving car makers stuck in the slow lane


This May, car manufacturers produced less than 55,000 vehicles, only half as much as two years ago.

Monty Rakusen / Getty Images

The production of cars in the UK has more than halved compared to the same period before the COVID-19 pandemic, due at least in part to an on-going shortage of chips that are needed to power everything from engine management systems to in-car entertainment. 

According to the Society of Motor Manufacturers and Traders (SMMT), this May car manufacturers produced almost 55,000 vehicles in the UK – a number that, at first glance, seems healthy in comparison to the meagre 5,314 cars that were produced in the same month of the previous year.  

But 2020’s statistics have to be put in context: with the COVID-19 pandemic rapidly gathering pace, factory lines came to a halt as most manufacturers decided to close their facilities altogether, in line with government guidance.

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6 Ways to Save Money on a Car in Today’s High-Price Market

Low inventory and high demand is good news for auto dealerships. If you plan to buy a car, keep reading to learn how you can save money at the dealership.

If you’re thinking about buying a new or used car, expect to dip further into your bank account for the foreseeable future. According to J.D. Power, the average new car price was up 8.4% (to $37,200) from a year ago, while used cars saw a 7% uptick.

So what’s fueling the price hike? Increased demand and limited car inventory caused mainly by a semiconductor shortage.

Keep reading to learn more and to see how you can keep costs reasonable in today’s high-price market.

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Lyn St. James Car Collection Featured At Amelia Island Concours d’Elegance

⚡️ Read the full article on Motorious

The iconic racing staple has quite the taste in cars!

Lyn St. James is a favorite over here at Motorious. She inspires our whole staff and we are in admiration of the work she continues to do for the automotive and racing communities. When it was announced that she was going to be the 2021 Amelia Island Concours d’Elegance honoree, we couldn’t agree more that she deserves it, and the icing on the cake is that she is the very first woman to hold this position.

During Sunday’s Concours d’Elegance, the cars of Lyn St. James’ career were on display, telling the rich story of the pro racer’s career.

It was a Ford Pinto that started the rise of Lyn St. James in the 1970s when her career began. St. James would earn her first titles in road racing championships in South Florida.

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Chip Shortage Expected to Cost Car Industry $110 Billion in 2021

  • The semiconductor shortage is expected to cost the global automotive industry $110 billion in 2021.
  • Ford and GM have cut their earnings expectations by $2.5 billion and $2 billion, respectively.
  • “This is going to be longer and more difficult than most people think,” one dealer told the WSJ.
  • See more stories on Insider’s business page.

The semiconductor chip shortage is roiling the global supply chain, but no sector is feeling it worse than the auto industry.

A new estimate from the consulting firm AlixPartners puts the global industry cost of the shortage at $110 billion this year, up from an earlier estimate of $60 billion in January.

“The pandemic-induced chip crisis has been exacerbated by events that are normally just bumps in the road for the auto industry, such as a fire in a key chip-making fabrication plant, severe weather in Texas, and a drought in Taiwan,” Mark

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