In the market for a car? The chip shortage is already railroading 2022 models

August 20, 2021

By Kim Komando

The pandemic has lasting effects that we will feel for years. The chip shortage is one such issue, causing a scarcity in tech gadgets and other components, many of which are parts of larger machines.

The automotive industry has been hit particularly hard. While it’s easier to get a new car now than last year, used cars are holding their value and will continue to do so for some time. Tap or click here to check out which vehicles are retaining the most value.

Mercedes-Benz has major supply chain woes for 2022 models due to the limited global chip supply, as are other car companies. Production issues are not just limited to cars, either.

Mercedes drops its big motors

A dealer notice leaked to Reddit shows that Mercedes-Benz AMG models equipped with V-8 engines will be suspended for the 2022 model year.

The models include:

• AMG C63S S coupe and S cabriolet
• AMG GLC63 S coupe and S SUV, AMG GLC63 SUV
• AMG GT 63 S and GT 63
• AMG E63 S and S wagon
• AMG G63, G550
• AMG GLE63 S SUV and S coupe, AMG GLS63 SUV
• Maybach GLS 600 4Matic
• GLE580 4MATIC and GLD 580 4MATIC

Customers who already placed orders for the affected vehicles will have to arrange with their dealer to get something else. This affects certain powertrains, so you can still get an E class or C class, for example, without the V8.

Want to avoid the dealership completely? Tap or click here for tips on buying a car online.

Global car shortage

Cars have more chips than you may realize. The window motors, tire pressure sensors, fuel sensors, O2 sensors, navigation system and countless other components and features are controlled by microchips.

Consumer Reports has some tips on how to buy a car during this time.

• If your old car has mechanical problems, hold off on getting a new one and get it fixed.
• SUVs and pickup trucks, especially those equipped with all-wheel drive, are in higher demand and will cost more. Opt for two-wheel drive models if you live in an area with mild weather.
• If there’s a model you have your heart set on but it’s too pricey, you may find one in a similar class from a different manufacturer.
• Call up a bunch of dealers and ask what they can do for you as far as price. Look for local deals.
• If you can’t find the car you want close by, expand your search. You can drive the extra miles to get a car that makes you happy or your dealer can have it delivered.

Beyond cars

It’s not just fancy cars that are affected. Modern tech needs semiconductors and microchips to function.

The chip shortage delayed the release of the highly anticipated iPhone 12. Qualcomm, one of the world’s largest mobile chipmakers, is struggling to keep up with demand. You can find Qualcomm chips in cars, watches, laptops, smartphones and more.

Intel CEO Pat Gelsinger told BBC, “It’s going to be a year – to two years – until we’re back to some reasonable supply-demand balance.”

Sony PlayStation 5 has been out since November 2020 and is still difficult to find. Microsoft’s Xbox Series X and Xbox Series S launched around the same time as Sony’s Console and are also in short supply.

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