The semiconductor chip shortage has wreaked havoc on automotive production for over two years now, leading to previous little inventory on dealer lots and soaring prices. However, it’s proven difficult to predict when this crisis might end, as opinions on that topic vary greatly. Ford’s COO Lisa Drake and CFO John Lawler see the problem enduring through this summer, while CEO Jim Farley believes that it will persist through next year, and Ford Europe chairman Gunnar Herrmann previously predicted that the shortage won’t be over until 2024. Volkswagen’s finance chief, Arno Antlitz, recently gave a more pessimistic outlook as well, pegging 2024 as a likely end date. However, new car buyers are a bit more optimistic, according to new data from Cox Automotive.
The organization’s latest survey found that most new car buyers are well aware of the issues caused by the chip shortage, and most indicated that they expect it to endure for another six months or more. Most believe that prices will continue to rise as a result, while some plan to postpone their purchases and others will order and wait for those vehicles – which over a third of shoppers in another recent study said they would be willing to do as well. However, fewer and fewer consumers are willing to pay more than MSRP to bring that new vehicle home.
According to Cox’s study, those that are willing to pay over MSRP would pay around 20 more than a vehicle’s sticker price, while around 33 percent expect to take delivery of an ordered vehicle in 10 weeks. A total of 45 percent intend to delay their purchase, while around 50 percent believe that prices will continue to rise. More than half expect the shortage to continue for at least 6 more months, while a third believe it will persist for a year or more.
“Like the pandemic, the chip shortage is triggering permanent changes in how consumers shop for and purchase vehicles,” said Vanessa Ton, senior manager, Industry Intelligence at Cox Automotive. “Ordering a vehicle and waiting weeks for it was nearly unheard of in the U.S. before the chip shortage. Now ordering a vehicle from a dealer is more top-of-mind for consumers and they expect it to be commonplace in the future.”
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Comments
Nice article-ordering and waiting weeks for a vehicle how about months and still no word-as in 7 months with probably another two months with shipping etc.-gives ford a chance to raise prices more because of delay-way to go- last ford for this family—
Ford offers price protection at the time your order is confirmed in the order bank system. When your dealer gives you the build preview sheet, ask them to keep a copy of the WBDO preview so they know the original MSRP you are locked in at. Ford will supply them a corrected invoice if there was a price increase as long as you buy that vehicle and your name is on the purchase order at time of sale and matches the build sheet name registered with Ford.
Ford made me wait for 15 months now,is that disappointed enough for customers,yet i lives in Canada how you think ???,thats not the good way to compete with China,come on Ford USA
Ordered a ford mustang GT premium in November of 2021 11/24/21 to be exact. Since that time I have received no less than 9 “your vehicle is on the way to your dealership” with dates expected notifications generated by somewhere deep within Ford’s organization.
To date I have not had anyone at Ford headquarters do the right thing (4 calls to min Ford corporation so far) and tell me why: 1. I am still waiting on my car (usuall reponse is oh, the dealer knows WRONG!!! I have been to the dealer no less than 8 times so far and they have no idea as to why bulletins etc..
2. Who generates these bogus delivery bulletins, not even marketing will own it.
And now after multiple attempts with corporate’s headquarters I am only told oh, it’s on a plant hold. Hmmmm again no specific reason especially if I ask is this a chip issue? Crickets on their side of the line is the answer.
So I am giving this until the 6 month date of ordering and when I return from a out of country trip and it is still not delivered well….I most likely will just keep my cash and probably buy something elsewhere that is on the lot of another dealer.
In my opinion Ford could of done a much better PR job with waiting customers period. Be honest and perhaps our collective patience will be more inclined to be supportive and wait.
After all we liked what we ordered so as above…
Lastly if I wanted an AUTOMATIC GT configured like the one I am waiting on (manual shift-amen) I could of easily purchased at least 15 just in the state of Washington alone; but its just wrong to put an automatic shift in such an iconic muscle car in my opinion. Call me old fashioned etc…lol
So if they are able to flood the market locally and elsewhere with automatics which are sitting on the lots for months; where is my freakin car FORD!!!! it’s not rocket science to put a manual transmission in the same car!!