Semiconductor global shortage impacting Barrie

BARRIE, ONT. -

A global shortage of semiconductors, a small computer chip used in new vehicles, is leaving many car dealerships in Barrie looking empty.

“It has been tough to get vehicles in; normally we have about 800 in stock,” said Paul Sadlon Jr., a car dealer at Paul Sadlon Motors.

The shortage has curtailed production for months, forcing consumers to wait longer.

“Usually, it took about six weeks, give or take, and now we are taking two months at a minimum if you ordered one today to try and get it in,” Sadlon said.

The shortage is also pushing up the price of trade-in values for high-demand vehicles like SUVs and trucks.

Something people like Richard O’Neill are taking advantage of it, although he says he is looking at a two to three-month wait.

“I have a current truck, and I’m looking to upgrade. I bought it two years ago, and I’m pretty much getting what we paid for it two years ago,” O’Neill said.

According to Canadian Black Book, new car inventory is down about 31 per cent, and it’s creating a surge in both demand and price for used vehicles.

“Prices are up almost 25 per cent versus the prior year, and they are continuing to grow right now,” said James Hancock, director of development with Canadian Black Book.

At the same time, soaring demand is leaving used dealerships struggling to get their hands on inventory.

“We’ve actually started securing vehicles simply from the public,” said Chris Sargent, general sales manager at Eckert Auto Sales.

“Whether that be the same means the public would use Facebook Marketplace or Kijiji autos. Anything we think would be a solid vehicle with no accident history, with relatively low mileage and more recent model year.”

Until the situation cools off, Sargent says turnover will continue to be high.

“We’ve got clients calling from as far as Sudbury, Thunderbay, Montreal, Windsor and securing vehicles as soon as they’re put online,” Sargent said.

Hancock says the supply of semiconductors is expected to bounce back by the end of the year. However, new car inventory is not anticipated to be back to normal until 2023.