Muscle Car Production Ceases Thanks To Microchip Shortage

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Get ready for even more problems.
Despite many rosy feelings about a supposed fresh start for 2021, which apparently for so many was not based on reality, the auto industry is facing some serious problems thanks to the COVID-19 pandemic and subsequent government-enforced shutdowns. This time around, it's a semiconductor shortage that is causing a wave of problems, including halting production for certain muscle car models.
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Photo credit: Fiat Chrysler Automobiles
In particular, production of the Dodge Challenger and Charger and the Chrysler 300 will be discontinued by the end of February. Given the huge demand for modern Mopar muscle cars that have led the segment in North America, this could cause some serious problems. We're specifically talking about more thefts, higher inventory prices, and Dodge, which is losing ground in the market at least until March.
The global shortage of chips was in part what caused computers and game consoles to be sold around the world. People work from home, children go to school from home, and many are looking for home entertainment more than ever.
Photo credit: Fiat Chrysler Automobiles
Industry analysts claim this shortage will only cause short-term production limits for vehicles. Still, the effects of fewer new cars are likely to be felt longer. Not only will buyers likely have to pay more than if vehicles were in a higher bid, there is also no doubt that car thieves will take advantage of the situation. We saw an increase in car theft rates back in 2020 when criminals realized that delivering high demand vehicles and their parts was a business opportunity.
It's not just muscle cars that are feeling the pinch, but also those from the affected models that interest us most. According to Fiat Chrysler, for example, the production of the Jeep Compass will be delayed further than originally planned. Ford will idle production of the Escape and Lincoln Corsair. Honda reports that production in Japan may slow down. Toyota plans to reduce production on the tundra in Texas. Volkswagen says it will adjust production of certain models in North America and elsewhere, but did not give details.
Right now, GM doesn't seem to be affected by the chip shortage, but that may change.
Source: Reuters
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