Keeping you up-to-date: Global Semi-Conductor Shortage Impact on Vehicle Lead Times
Last updated: 26th August 2021
Why are new car deliveries delayed?
You may be aware that a global shortage of the component semi-conductor chips, due to the Covid-19 pandemic, has impacted vehicle manufacturers.
What is a semi-conductor?
Semi-conductors are key components in vehicles, and many electrical devices such as mobile phones, computers, gaming devices, appliances, and medical equipment.
They are key to power in-car technology such as mobile phone integration, screens and displays, driving aids, comfort and performance features.
There are often thousands of semi-conductor chips installed in each car.
How are vehicle manufacturers solving this problem?
Manufacturers have responded by changing the specification of certain vehicles or temporarily suspending production of specific models.
This is contributing to longer than normal delivery lead times for certain popular vehicles across many areas of the automotive supply chain world-wide.
Why are there fewer stock lease deals available at the moment?
Due to the global shortage of semi-conductor chips, many manufacturers have had to temporarily suspend production or change the specification of certain vehicles.
Reduced production means there are fewer stock deals available than we would normally expect at the current time.
Our team are working closely with our finance providers and manufacturer partners to source stock vehicles as they become available, and we will ensure these are communicated to our customers at the earliest opportunity.
As stock deals come onto the market, they are being sold quickly. We recommend securing your order if you are offered an appropriate stock vehicle as soon as possible to avoid missing out.
We’re also working directly with manufacturers and suppliers to understand lead times for factory orders so that we can provide the best and latest information to our clients.
Why can’t I place an order for my new vehicle for next year?
Certain manufacturers, such as Land Rover, are not taking orders on vehicles which have a longer lead time than 12 months. This is across all automotive outlets, not just the leasing sector.
Fortunately, we have access across the wider marketplace and we can look to secure you an alternative lease vehicle for the next few years.
There are alternatives available, in some cases with high specifications and the latest technology, if you are able to consider an alternative brand.
What are my options at the current time?
If you are due to replace your current lease vehicle or require a new car this year or early next year, we strongly recommend speaking with your Synergy Account Manager at the earliest opportunity and placing your order early to secure your vehicle.
We can also keep you informed on stock vehicles as they become available, and help you find the best outcome for your requirements.
We recommend keeping an open mind to alternatives on the marketplace, if your first choice is not available in the timescales you require it.
Depending on your contract, it may be possible to extend your current lease, but not all finance providers are offering this currently. Our team will be able to help you consider your options.
