It’s in the news almost daily, the chip shortage in the auto industry. This shortage was obviously caused by the Corona outbreak and is causing major shortages and supply problems. However, The Engineroom Amsterdam has come up with a solution to this.

The Chip Shortage

Automakers have had to shut down their factories en masse over the past year. Not directly by corona, but by the global shortage of semiconductors. This has major implications for those who have ordered a new car and also for those who are looking for another car.

Semiconductors are used to control all kinds of electronics found in every luxury car today. Indeed, cars today are more and more computers. However, the automakers do face a problem, as the shortage of chips has also reduced sales.

Porsche, BMW, Land Rover, Ferrari, Audi and Mercedes-Benz have already indicated that they hope to make up for lost sales this year, but also indicate that the shortfall could continue into 2023. Other car brands are also suffering from long delivery times and a shortage of available cars.

We ourselves think that this is going to be a much longer period, when we see the conditions attached to new orders, or demos. We are therefore striking early and hoping it all works out well in the coming years.

The consequences

The chip shortage has bigger implications than one might initially think. Luxury car brands like Porsche or Ferrari have always had longer delivery times, but the chip shortage has only made the waiting lists longer. Added to this is the fact that people are doing well economically.

Because the money in the bank gives no return, and also because of the situation lately, people like to spend the money on nice things like a car. Land Rover, for example, has just presented the new Range Rover Vogue, which is a car often seen in Amsterdam, for example.

So it is only because of the shortage that it may be a while before the new Land Rover will actually be available. In short, high demand, low supply and long delivery times is something many a car salesman and car buyer has to deal with.

Fortunately, we were able to secure at least 3 demos of this model, and inquiries for new orders are now slowly trickling in. We are expected to receive at least 2-3 demos this summer. The cars we order new for customers will be delivered in late 2022, early 2023.

The used car market

Because new cars are poorly (or not) available, car enthusiasts are turning to the used car market. Exclusive and young used cars are especially popular in this regard. However, this also creates a downside, which is an increase in the price of used cars, making them more expensive than a new car in some cases.

A well-known snowball effect that is also visible in the housing market, for example. We are still using our “regular” prices to date, but we see that competing competitors are quickly adding 5-10% plus on prices. And we get that, because some models just aren’t available anymore. Matter of supply and demand.

The solution

The chip shortage itself will continue for a long time, so consumers will continue to suffer from long delivery times and higher prices for the foreseeable future. We also see that raw materials such as magnesium are becoming very scarce. And that in turn translates into further delays in the models to be delivered.

While the world is looking for sustainable solutions, fossil and “old-fashioned” materials must now spare it. This affects a lot of things, including cars and delivery times.

However, The Engineroom Amsterdam has an answer to this. If you are looking for a specific exclusive car, but don’t want to wait 8-12 months, then you have come to the right place in Amsterdam.

Whether it is a Porsche, Mercedes, Landrover or a Ferrari, through our large network we can help you get your new dream car. And we have a lot on order, chances are we can help you right away.

Browse our collection here or contact us here if your dream car is not listed here.