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If you’ve been reading the news lately, you may have come across the phrase “chip shortage.” A lot of news sources have been reporting that computer chips are in dangerously short supply, disrupting the supply chain for everything from cars to washing machines to gaming consoles. This shortage has affected a multitude of car manufacturers, Honda among them. If you’ve discovered that it’s difficult to find a new car around Santa Cruz, the chip shortage could very well be the cause. Ocean Honda Santa Cruz has got more information below for those interested in discovering more about the chip shortage and how it’s affected Honda and the rest of the car industry. Although there may be a shortage of new vehicles, Ocean Honda Santa Cruz has a robust online inventory of used and certified pre-owned vehicles alongside our new supply, so check it out!
Computer chips, also called semiconductors, are produced by the thousand to run just about every electronic aspect of our lives, from our computers to our phones to our televisions. There’s a growing demand for them right now because of the wide array of new products available, such as the iPhone 13 and the PlayStation 5. But due to a variety of factors, chief among them the COVID-19 pandemic, the supply of chips is falling critically short of the demand. With fewer chips come fewer products, which is why you might have found it’s hard to buy a new computer, phone, or gaming console right now.
The chip shortage affects the automotive industry too – just like phones, computers, refrigerators, and consoles, cars run on thousands of computerized chips. Many manufacturers – including Nissan, Volvo, Ford, and yes, Honda – have announced downsizing or halting their supply of new vehicles. As we continue to navigate the COVID-19 global pandemic, car manufacturers are learning to adapt to ramp production of new vehicles back up to normal. Some experts have also estimated that demand for chip-powered products will slow down over the next year, enough for the supply line to catch up.
Although the chip shortage has heavily affected automotive production, Ocean Honda Santa Cruz still has a wide variety of new Honda models available. Feel free to contact our office to set up a test drive around Watsonville, or with any questions about Honda. This is a challenging time for all of us, but we’re committed to helping our community through it in all the ways we can.
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