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Microchip shortage continues to hit auto sector hard, with double-digit unemployment in Windsor

Microchip shortage continues to hit auto sector hard, with double-digit unemployment in Windsor

CBC
Monday, September 27, 2021 11:51:59 AM UTC

New cars rolled off a truck at Performance Ford Friday, but it's a sight that's not as common as it used to be.

"Our inventory levels have been down to, I would say, around 30 per cent," said sales manager Moe Hazime.

But Hazime says this dealership is one of the luckier ones.

Greg Layson, digital and mobile producer for Automotive News Canada, said plenty of dealerships are low on inventory amid a global shortage of semi-conductors, which are used in the making of cars and electronic devices.

"I won't name the one that I've seen, but there is a particular brand that has four vehicles out in front of its store right now that aren't made by that automaker. They're used vehicles," said Layson.

He says North American automakers have been hit the hardest but Honda and Toyota are about to feel the pinch.

"Honda and Toyota are going to cut production here in the fall, and when they stop production, there's usually about a month to a month and a half before the dealers are actually affected. So anyone that doesn't have anything on their lot right now and production stops, it's going to be a long time for those dealer lots to be restocked," said Layson.

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