Survey: 91 Percent of Dealers Worried About New Vehicle Supply
The consequences of the COVID-19 pandemic and global chip shortage on new vehicle production are being felt by the vast majority of dealers across the country.
According to an April survey of 535 members of the Canadian Automobile Dealers Association (CADA), close to 91 percent are concerned about new vehicle supply in the near future.
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This concern is amplified by the expectation of the time it will take for supply to increase, with 87 percent of respondents believing that it will take at least six months to see an increase in supply. What’s more, 57 percent say they don’t believe that Canadian dealers are getting their fair share of global vehicle allocation.
Following a historic 20-percent drop in 2020, new vehicle sales in Canada have rebounded nicely based on the latest stats posted by automakers, but there is still plenty of uncertainty.
From Ford to Toyota and many others in between including General Motors, Stellantis, Honda and Subaru, production interruptions have been a constant this spring and will continue for the foreseeable future. Just this week, the Blue Oval announced a two-week stoppage at its Wayne, Michigan assembly plant that builds the Ranger and more importantly the highly anticipated Bronco. Elsewhere, Ford has to stockpile incomplete F-150 pickups in parking lots due to a lack of parts.
“The chip shortage and recent COVID-related restrictions across Canada will weigh heavily on the recovery of the auto sector this year,” said Oumar Dicko, CADA’s Chief Economist. “While we were pleased to see the extension of the Canada Emergency Wage Subsidy (CEWS) to the end of September 2021 in the recent federal budget, more support and sound policies are needed to allow for jobs and business recovery.”
Dicko also claims the proposed luxury tax in the budget is concerning for an industry in the midst of recovering from crisis like no other in recent history.