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Why is There a Chip Shortage?


Chips, sometimes referred to as microchips and semiconductors, are experiencing unprecedented supply chain discrepancies. Chips are often thought of as the foundation of electronic devices, including new vehicles that have electronic components. Many Cookeville drivers are wondering, “Why is there a chip shortage,” and what are the implications for the car buying experience. Not to worry. The Cookeville Honda service team has provided you with a simple guide. Follow the guide below to bring you up to speed on why there is a chip shortage for cars, what is the chip shortage, and how to handle chip shortage automotive inquiries. 

What is the Chip Shortage? 

Nashville area drivers might be asking themselves, “What is the chip shortage?” Electronic devices and products with electronic components rely, such as cars, rely on chips. With the added demand of devices created by working from home and virtual school, chips have been needed for computers and other devices. Additionally, due to the COVID-19 pandemic, there were factories that had to shut down for months on end.

Why is There a Chip Shortage for Cars?

Thanks to the increased demand for consumer electronics during quarantine, as well which led to the situation that we find ourselves in now. Many experts are predicting that the chip shortage for cars will not be resolved until early 2023. This can make it harder for shoppers in Nashville and Carthage to find the vehicle they’re looking for.

Responses From Other Automakers

Here’s how a few automakers have responded to the chip shortage:

Chip Shortage Automotive Response: Toyota

  • Slowed production on several factories

Chip Shortage Automotive Response: Nissan

  • Will be making 500,000 less vehicles this year

Chip Shortage Automotive Response: General Motors

  • Has had to halt production of its pickup trucks and has had to park thousands of vehicles that do not have semiconductors. 

Find Your Next Vehicle Today at Cookeville Honda!

Now you understand why there is a chip shortage, but you still may be in need of a vehicle. At Cookeville Honda, we have new models, as well as an inventory of used and certified pre-owned vehicles to choose from. Contact us for more information!


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