New car deliveries in the state set to be affected by global chip shortage

New car buyers in Ireland will likely have to be patient when ordering new cars in early 2022, as the global shortage of semiconductor chips continues to erode global car production.

This chip shortage appears to have no immediate end in sight, with some analysts predicting it will continue into 2022. Globally, auto sales have fallen dramatically, with the US market reporting its worst half year since the 2009 recession.

Car dealers, across the board, say that consumers care more than they care about the cars they supply.

Even the mighty Toyota, which overtook General Motors for the number one sales spot in the US for the first time, has said it will have to cut its production forecast for 2022 — albeit by just 300,000 vehicles out of its projected total of nine million.

The Irish buyers’ story, specifically, is mixed. Many car importers and manufacturers placed orders early, anticipating that customers would be keen to spend this year.

The Irish Automobile Industry Association said it expects big things from the car market this year. The industry hopes that 2022 will see further improvements in business levels. Pre-orders indicate a strong appetite for new and used vehicles, providing a positive outlook for our industry with a return to the new car sales levels expected in the pre-pandemic period of 2019.” said its general manager, Brian Cook.

There is deterministic mathematics to this, though. If Irish buyers return to dealerships at a time when car production is disrupted around the world, some people will end up disappointed.

How frustrating you are will likely depend on the brand you’re buying, and in some cases the individual model you want.

Ford quotes some particularly long delivery times. “We are looking at approximately four to five months from delivery time for most vehicles, particularly the more popular models such as the Fiesta, Focus and Mondeo. The Kuga can be up to six months depending on spec. Passenger models from the truck range can be more than Six months for Tourneo Connect and Tourneo Custom “Ranger pickup could be six to eight months,” a Ford Ireland spokesperson said.

Hyundai—of which the single best-selling single model was the Tucson—is so confident that it will have a sufficient supply of new cars not to leave customers waiting.

“We ordered very early, last April for many models, and in large numbers, so we have more stock than some manufacturers. We have adjusted our specification offerings for what can be produced early,” said Hyundai Ireland Managing Director Stephen Gleeson.

“Realistically for Tucson, we’re now guiding January or maybe February if someone isn’t very specific – ‘I want the Model X in Y with the roof color Z.'” Dealers are likely instructing an extra month to allow for potential delays to deliver on a promise and over-delivery rather than The opposite.

“The only exception to this will be in the Ioniq 5 where the high-spec Premium Plus and Kona Electric top spec Premium version are somewhat delayed due to a lack of chips, but on most other specs we can offer [first quarter] Connecting. We also have delays in i20 and Bayon as we will be directing the month of March for new orders.”

Toyota Ireland, which ended 2021 as the best-selling car brand in the state, sounded more cautious. Michael Gaynor, director of marketing for Toyota Ireland, told The Irish Times: “We are seeing strong demand from diesel customers from competing brands who are now ready to transition to Toyota hybrids, particularly in the SUV segment with lead times now expected. To March and beyond for certain models and degrees.

“Supply will continue to shrink for most of 2022 and expectations for a supply recovery in the second half are slim though we may hear in the media.”

Toyota’s popular Yaris Cross and RAV4 SUVs have sold well for January and February, with only a small number left for delivery in March at the time of writing. The Corolla and C-HR are sold out for January, while there are a few delivery slots for Yaris.

Renault is somewhat more optimistic. Jeremy Warnock, director of product sourcing and distribution at Renault Ireland, told The Irish Times: “In terms of vehicle supply, the Renault group is in a good place. Even after our January allocation ends – or if the customer is looking for a variant we don’t have – it won’t be Long wait because we have February production slots for March delivery.

“Similarly, Dacia Ireland has given a good share of Sandero and Duster. The only stipulation is that we usually build New Year’s stock in September, October and November. This year is November, December and January, so there may be a slightly longer wait than if you were waiting for a specific color or trim Certain. The exceptions will be Mégane E-Tech plug-in hybrid and Kadjar, where volumes are now severely restricted. But we have found that a lot of Mégane and Kadjar customers are moving to Arkana.”

Jane McGann, Head of Marketing and Communications, Nissan Ireland, said: “We have worked hard with Nissan Europe over the past months to ensure we have enough stock for the 221st period. We are confident that we will be able to meet mainly January and February orders.”

For premium automakers, the picture seems more murky, not least because high-end models have more chipsets inside.

Globally, Tesla has shown that it can, at least partially, get around the chip shortage and keep production flowing.

If you want a new Model 3 on the plate 221 in Ireland, you can expect to receive a bespoke car in March, although Tesla notes it has a number of test models in stock if you want one sooner than that. The more spacious Y SUV has a somewhat more ambiguous estimated delivery date of “early 2022” if you order now, but customers who want a larger, more luxurious Model S or Model X will have to be patient. They are told, “Pricing and options will be finalized as delivery approaches. [Customers] You will be notified to complete the order when prices and final options are published.

What about BMW?

A BMW spokesperson said: “We have reduced or offered alternatives to customers as we reduced the number of semiconductors in cars. We are closely monitoring the situation and are constantly communicating with our suppliers regarding this matter.”

BMW has also stated that it is linking up with microchip developer Inova to secure a dedicated supply of chips, but that agreement won’t come to fruition for some time yet.

If you want a new Audi, you’ll wait 12 weeks. Richard Molloy, Head of Marketing and Product, Audi Ireland, said, “Overall, customers are advised to have an order period of 12 weeks for their new Audi, but customers face long delivery times given the situation. The semiconductor problem remains volatile with bottlenecks continuing into the first half of the year. 2022. We are working to keep our customers mobile in the event of delivery delays, for example by extending the terms of their financing agreement.”

At Mercedes-Benz Ireland, Director of Passenger Vehicle Sales Ciaran Allen said: “Like many in the industry, Mercedes-Benz has been affected by the global shortage of semiconductors, with delays reaching their highest levels in the second and third quarters of 2021. We expect semiconductor release to continue through The first part of 2022, with improvements in the second half of the year, as we hope to return to normal production levels.”

The detrimental effect of all these delays and shortages of new cars will continue to affect the used car market, with inventory shorter in the front yard and higher prices commanding.

Used car numbers for used car numbers hit a record low in late November, said Conor Opwell, of Sweep used car specialists, and are now rebounding a bit from that. “Used car inventory remains the most challenging aspect for dealers over the next six to nine months until chip shortages stabilize.”

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