GHOST CHIPS

If you’re thinking of purchasing a new car this year or next, don’t expect to walk into a dealer and drive out that day. Instead, you will be facing one of the longest waits in history due to the compounding effects of Covid on supply chains. The most pressing is a global shortage of silicon computer chips — an essential item for any modern car. The shortage is affecting all manufacturers, with Ford recently slashing shifts in two plants in the USA. There are reports of other manufacturers now offering lower specced high-end models (therefore less chips required) to lessen the blow. But it’s a problem that is affecting everyone, and most reports state we’re unlikely to see it ease until the end of 2022. “What we are seeing is disruption from the Covid pandemic hitting the global supply chain,” says Steve Pragnell, Toyota New Zealand general manager of new vehicles. “With the Delta variant, many countries around the world have seen a surge in cases resulting in factories having to be shut down for periods of time. For Toyota, this has disrupted our supply of essential componentry parts for the vehicle manufacturing process.” The reason we’re short of these silicon chips appears to be because of the rise in demand for the same chips in the computer industry during the start of the pandemic in 2020 when the car industry slumped, and it appears they just have not got back to the supply levels they once had. China is the world’s biggest supplier, with both the USA and European Union looking to increase their domestic production to lessen their dependence on the world market. But it’s unsure how long this shortage will last, with most pundits saying not to expect any change well into 2022.