Car sales lagging because of scarcity of semi-conductor
There is some action at the auto-port in Eastern Passage, N.S. as cars are shuffled around and loaded onto trains heading out of the province, but there are fewer vehicles here than there should be.
"We started first to see a reduction in production of vehicles, it would be about January of this year," says Shaun O'Regan, who owns car dealerships in Halifax. He says the pandemic caused people to stay close to home and vehicle purchases slowed, but the demand for personal electronic devices skyrocketed. That caused manufacturers to shift their production of a key piece of computer software.
"So, when they ramped up production, they were at a shortage of semiconductors," O'Regan says. "In addition to that, there have been supply problems with the semi-conductors at the different plants, There's not many semi-conductor plants in the world."
Dan Shaw, a marketing and consumerism expert at Dalhousie University says it's not just dealerships that are low on inventory. Anyone looking to rent a vehicle is also facing a shortage.
In the short term, in the spring and summer a lot of the dealerships were buying back cars from the car rental companies and now the car rental companies are realizing tourist season is starting to pick up and they need cars, says Shaw.
O'Regan says despite the lack of cars and trucks on site, most people who want to buy one can.
"Dealers are certainly selling cars," O'Regan says. "When you look, a lot of dealer lots you don't see vehicles there it doesn't mean that they can't get a vehicle. When a vehicle comes off the truck it's typically sold right away."
O'Regan says consumers should start to see a build up of inventory at dealerships within the next six months.
CTVNews.ca Top Stories
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.