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
Half of Canadians have negative opinion of latest Liberal budget: poll
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
'One of the single most terrifying things ever': Canadian couple among tourists on sinking sailing boat tour abroad
A Toronto couple are speaking out about their “extremely dangerous” experience on board a sinking tour boat in the Dominican Republic last week.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
An Ontario senior called Geek Squad for help with his printer. Instead, he got scammed out of $25,000
An Ontario senior’s attempt to get technical help online led him into a spoofing scam where he lost $25,000. Now, he’s sharing his story to warn others.
Accused of burglary at stepmother's home, U.S. senator says she wanted her father's ashes: charges
A Minnesota state senator and former broadcast meteorologist told police that she broke into her stepmother's home because her stepmother refused to give her items of sentimental value from her late father, including his ashes, according to burglary charges filed Tuesday.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.