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What’s causing a global new car delivery delay

Gareth Parker
Article image for What’s causing a global new car delivery delay

A global shortage of microchips has caused delays across the global vehicle manufacturing sector, causing significant delays to production.

The lack of components has put a major kink in the supply chain, causing delays on global production lines and in the delivery of new cars to consumers.

CEO of the Automotive Dealers Association James Voortman told Gareth Parker unexpected demand during the pandemic has put pressure on suppliers.

“When the pandemic hit, many of those manufacturers started cutting production because they were anticipating that they wouldn’t be selling many cars at all,” he said.

“But demand came back very, very strongly in many markets including Australia.”

He said the delays are likely to be a problem for some time yet.

“This is a global problem it is effecting almost every manufacturer in every market throughout the world.

“I think we have still got a number of months of the supply chain correcting itself.

“Unfortunately we are going to have to be patient.”

At least one car maker has started offering refunds for delayed deliveries.

Press PLAY to hear which company is offering refunds

(Photo: iStock by Getty Images.) 

Gareth Parker
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