A shortage of new cars on the lots is caused by a shortage of semiconductors coming out of China. Critics of the auto industry are asking why the U.S. - with its technology and enterprise expertise - doesn't just build a bunch of factories. Jerry Reynolds the car pro gives us some insight: "The problem is, chip factories have to be really big and COMPLETELY sanitized. Then there's the problem of finding people to work."
Reynolds says the factories are a huge investment and the chips sell for only 50 cents each, but a few are being built here. "Nobody in the U.S. in the past wanted to build one. We didn't think we had a problem. Now we have a problem. It's coming. Just not fast enough for anybody here in the industry." Reynolds says there's a high demand for fewer cars. "With the shortage of cars out there, dealers are able to charge more. And the manufacturers aren't having to offer big incentives! He says price hikes vary from model to model and dealer to dealer. "A lot of dealers are stuck at MSRP. Others, on some super popular vehicles, I've seen go for as much as $5,000 over MSRP
Unlike other forecasters, he thinks the shortages will ease up later this year. Hear Jerry Reynolds the Car Pro Saturday mornings on KTRH.