Lack of semiconductors and longer delivery times
The combination of the lack of semiconductors and the last two years with COVID-19 has prolonged the delivery time of cars. Furthermore, the total cost of a car rises, which has an effect on companies. The automotive industry is challenged, but at LeasePlan we are expecting improvements throughout the year.
Why is the automotive industry being challenged, and what does it mean for your company?
COVID-19 continues to have a significant impact on the global market and plays an essential role in the production of semiconductors. Moreover, inflation is higher than what could be expected, leading to increased prices.
At LeasePlan, we are neither more nor less affected than other companies, both nationally as well as internationally. However, we are optimistic and expect improvements throughout the year. In this respect, we would like to stress that we understand and acknowledge your frustration regarding the aforementioned challenges.
Semiconductors
In 2021, we saw a reduction of almost 10.5 million cars due to the situation with the lack of semiconductors. This trend continues in 2022, and, unfortunately, this has led to an even greater lack of cars.
How do we solve this problem? By building more production plants.
In 2021, the existing production plants sold more than 1 billion semiconductors. However, supply still did not meet demand. This is an important factor in relation to the car manufacturers.
Fortunately, great news is coming. Approximately 40 new production plants will start producing semiconductors, and, hopefully, this will increase supply.
LeasePlan offers the following advice in this connection:
- Order your new cars as early as possible - preferably 9-12 months before the existing contract expires
- Accelerate the transition to the green fleet – the car manufacturers prioritise the production of electric cars.
Longer delivery times
The combination of the lack of semiconductors and the last two years with COVID-19 has prolonged the delivery time of cars. Both the production plants and the workshops are still affected by COVID-19. Unfortunately, the shortage of labour has led to several production companies having to shut down their companies, and this has created overall problems for the car industry.
With the prospect of a world without COVID-19, where resistance among the population has increased, we can look forward to the production companies working at full speed again, thus meeting the increasing demand for cars.
As mentioned above, at LeasePlan we recommend that you order your new cars and book appointments at the workshops well in advance. Waiting times may be longer, and day-to-day service cannot be guaranteed.
Registration fee and more expensive cars
LeasePlan always follows the applicable law.
As of January 1st, 2022, changes have been made in the registration fee, and these are applied on electric, plug-in hybrid, and fossil vehicles. Besides the changes in the registration fee, most of LeasePlan’s suppliers have announced inflationary price increases on all vehicles.
Combined, this has an effect on the price of the car, as well as the eventual effect on recalculation.
At LeasePlan, we will monitor the situation closely and keep you informed.
