LAKELAND - Those shopping for a new set of wheels may find it's slim pickings throughout the Lakeland.
Vehicle dealerships across the province are experiencing a shortage, and area lots are reflecting the shortfall.
“Certainly, in Alberta... the supply in inventory is significantly lower than it would be (normally) going into spring and summer selling season,” expressed general manager and managing partner for Bonnyville Dodge Cory Welsh. "For Bonnyville Dodge, I’d say overall we have 40 to 50 per cent of new cars we would normally have on the ground."
Byron Johnson, sales at Ducharme Motors, said they're facing the same issue.
“It’s a combination of the plants being shut down over COVID-19 and then a shortage of commodities like some parts, chips, things like that. It’s created a slowdown to get vehicles produced and out to the dealerships right now,” he detailed, adding it's mostly microchips causing the issue.
Welsh agreed, “It’s fairly widely published that there are issues with the supply chain, specifically around automotive components, semi-conductor chips, and microchips."
But the shortage of auto parts isn't only impacting the dealerships. Businesses such as Sapphire Auto and Industrial Supplies in Lac La Biche are also being affected.
Owner of the auto part business Brad Nahorney told Lakeland This Week they too "have experienced some shortages since last summer on certain types of products from various manufacturers depending on where their facilities are located around the world."
He continued, "The automotive industry is very integrated around the globe, so as some countries were locked down because of COVID-19, the production of parts was reduced. Most factories run near full capacity, so when they are shut down due to COVID-19, it can take a long time for them to catch up on the backlog of orders. Adding to the issue is the delays in shipping product overseas due to lack of space on the container ships."
With that in mind, dealerships are doing what they can to keep up with demand.
For some businesses, that means offering better incentives and suggesting customers order their vehicle from the factory rather than pick one from the lot.
“A lot of our customers are taking advantage of factory ordering vehicles... so they get exactly what they want in terms of options and specs. The beauty of that is they get to choose from the incentives at the time of order or at the time of pick-up,” Welsh expressed.
Johnson said, “Like most businesses, we have been adjusting as we go. A lot of what we have been doing is custom ordering for our customers... ensuring they get the vehicle they want. A lot of people are used to just walking onto the lot and taking something and driving away, we can customize it for them and get a vehicle ordered exactly how they want it. It alleviates that problem there to."
Customers looking to trade-in their used automobile for something new may be noticing the value of their vehicle is higher than usual.
“There are a couple of factors that affect used. Right now, there’s not as many vehicles on the lot, so the trade values are definitely up a little bit, and a lot of that has to do with the American market. Because of the big dollar difference, a lot of American wholesalers are buying Canadian vehicles and exporting them south. It’s a bit of a combination... The biggest factor on it is the exporting to the United States,” explained Johnson.
Like most businesses, dealerships are riding out the pandemic and doing what they can to keep it business as usual.
Their hopeful the shortage is temporary.
Nahorney said, it may take several months for things to get back to normal.
