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The Global Chip Shortage [Manufacturing Delay]

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What’s causing the manufacturing delays?

If you’ve been looking for a new car and have noticed that some of the lead times are a lot longer than usual, then it may be due to the global chip shortage!

Carmakers around the world have been hit by a shortage of semiconductors caused by COVID-19 supply-chain disruptions as well as soaring semiconductor demand at consumer electronic companies (semiconductor chips are a critical part of every electronics product).

Many carmakers cancelled their chip orders expecting lower demand over the pandemic. However, they did not anticipate the huge bounce back, which then sent the global chip supply into a downward spiral. The chip suppliers merely could not keep up with the ramped-up demand from carmakers as well as the continuously increasing demand in other electronic products.

This essentially, caused (and is causing) an increase in lead time for brand new vehicles.

Will the chip shortage ease in later in 2022?

German carmaker Volkswagen expects a continued hit from a shortage of semiconductors this year, although it should be able to ramp up production in the second half of the year, Chief Executive Herbert Diess said on Wednesday.

"The supply situation is getting better, but even in 2022 we will not be able to build all the cars we could sell. But we see opportunities for further production increases, especially in the second half of the year," Diess said in a speech.


So, our outlook is, car manufacturers are struggling and factory orders are certainly seeing delays - this probably won’t end until the second half of 2022. Don’t stress though - if you’re in a rush for a new vehicle, there are plenty of great lease deals in stock now for quick delivery! Your vehicle can be delivered to you (free delivery UK mainland) as early as 2 - 4 weeks (if in stock). 

A factory order deal (not in stock) vehicle will be manufactured to your customised specifications. Given the current manufacturing delays for new cars, (due to the chip shortage) this could be anywhere from 2 -12 months.

Make sure to check Auto Lease Compare regularly as new deals, both factory and stock, are posted all the time. We are the UK’s leading Car Leasing Comparison Site.

Please confirm with the leasing company when you enquire the expected delivery date so you have all the information before you place an order.

You can send an enquiry with your contact details by clicking 'Enquire Today' or 'Call for Quote' and they will be in touch to discuss the details. 

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