Global semiconductor chip shortage continues to impact Central Coast car sales
SANTA MARIA, Calif - If you're looking to buy a new car you may have noticed there aren't many to choose from at local dealerships.
A global shortage of semiconductor chips used to make new vehicles fully operational is behind the lack of new inventory.
The problem started last year when the largest chip manufacturers, mainly in Japan, Taiwan and Korea, were shutdown by the COVID-19 pandemic as well as other unrelated problems.
2021 models are slowly returning to Central Coast dealerships and showrooms as the chip shortage eases and supply improves.
But consumer demand for new vehicles continues to far outpace supply.
"Probably a higher demand than usual because of COVID," said Bobby Duran, Sales Manager at Winn Hyundai in Santa Maria. "People were in their homes and not doing things, sheltering in place, basically not knowing what their next stage was going to be. They saved their money, now they're coming out and trying to make changes and get into new vehicles and the inventories are not where they're supposed to be for the demand that we have."
Other local dealerships in Santa Maria can't get new vehicles in fast enough.
"The majority of those new vehicles already have deposits placed on them," said Rudy Ramirez, sales representative with Santa Maria Ford. "As soon as they arrive they're practically sold, so all we do is phone the customer and they come and pick them up, so that's why you see the shortage of vehicles on the lot because the majority of these vehicles in transit are already sold."
New vehicle sales are one of the top three sources of sales tax revenue in the City of Santa Maria.
Local dealerships are working with the auto manufacturers to ship new vehicles without the semiconductor chips installed so they can be sold.
The computer chips can be installed later by dealership service technicians when they're more available.
Analysts say the chip shortage is expected to cost the global auto industry more than $100 billion in 2021.
