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Car Production Slows Due to Microchip Shortages

With the automotive industry facing a crisis due to microchip shortages, production of new cars has slowed to a halt in recent months, causing many people to spend weeks on waiting lists to get their hands on new vehicles. But how are microchips affecting car production and why are they such an important part of the manufacturing process? Let’s take a look at what you need to know about these key components of automobiles and how they affect your transportation options.

What is the Microchip Used in Cars?
The microchip is a computer chip that is crucial for operation. The vast majority of cars made today are run by a microchip. It enables all control systems on your car, from acceleration and braking to airbags and traction control. Without it, there can be no start, no drive. In fact, many modern cars wouldn’t function at all without their microchips.

Microchips are difficult and expensive to produce, and there are limited manufacturers who can produce them.

How are cars being produced today?
Cars are being produced today in a very different way than they were ten years ago. Computers are being installed into every facet of car production and operation. With nearly all new cars coming with onboard computers and hundreds of lines of computer code, microchips have found their way into everything from brake pads to windshield wipers. The question is: how will these components run without their microchips? And more importantly: when will supply meet demand again?

When might we see car production increase again?
We expect microchip shortages to continue for at least another year, as manufacturers continue to increase their demand for microchips and as current suppliers struggle with increasing production. Hopefully, by the end of next year, car production will be back on track.

Where do I buy my dream car now?
If you’ve been trying to buy a new car lately, you know that there just aren’t many options available. Why? Supply has dropped significantly over the past two years. Car manufacturers were caught off guard by microchip shortages and are still struggling with production issues. It takes longer than expected for manufacturers to receive their supplies of microchips and assemble cars. It is best to speak to a dealership to know when new vehicles will be available. Alternatively, you can browse car buying websites to see what is available in your area.


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