Riverside

New bill hopes to increase semiconductor chip production, even out car lots – Riverside, California

Riverside, California 2022-08-05 22:38:37 –

CORPUS CHRISTI, Texas — Among the bills President Joe Biden is set to sign into law next week is the CHIPS and Science Act. As a result of the bill, it is expected that new car production will increase.

Mike Shaw Toyota general manager Corey Brewer said of the last few years, “It’s been really crazy.”

Auto dealers have been having a tough time since the pandemic began. Their lot is starting to look a little barren.

There’s not a consistent influx of new cars into Mike Shaw Toyota.

The CHIPS and Science Act provides $52 billion to manufacturers of semiconductor chips that are key components in new cars.

Congress doesn’t just hand out checks. The funds will be used for grants and tax credits to build or expand new facilities in the United States only.

“Hopefully we’ll have enough chips to catch things to the point where we can get a normal supply of new cars,” Brewer said.

The lack of supply of new cars has had a negative impact on used car prices. Besides, people weren’t trading in cars, so supplies were down.

“It has impacted the cost of used cars,” Brewer said. “Used cars have almost doubled.

New cars do not appear immediately. Mike Shaw Toyota service director Jeff Barlow said each brand has its own way of selling.

In 2020 and 2021, Ford built about 400,000 trucks, some of which were distributed to dealers without chips, Barlow said. As chips became available they sent them.

“Toyota, on the other hand, doesn’t make a product or a car until it has all the parts.

Another issue that remains is that of the supply chain. Barlow said it was a little better, but servicing the vehicle was a fast game.

“We are still getting things done, but it will take longer,” he said. “Our supply his chain is more difficult than it used to be. It used to take him two to three days, now it takes two to three weeks.”

Unfortunately, Brewer said we may not see results until late 2023.

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New bill hopes to increase semiconductor chip production, even out car lots Source link New bill hopes to increase semiconductor chip production, even out car lots

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