Smaller inventories and parts problems in our immediate future?

Omid Badie, Car Smart Eletter, 2022-02-17, 2022-02-17

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It appears that the already reeling auto industry in Canada has been dealt another blow in Canada. The blockade of the Ambassador bridge in Windsor by trucks drivers and their sympathizers has delayed and/or derailed delivery of parts to car manufacturers in Canada and vice versa.

First, this delay will already impact dealerships that are very short of vehicles due to the chip shortage that arose with the outbreak of the pandemic. For consumers, this means less availability and more factory orders. This, in turn, means, longer wait times before your factory order gets delivered. For dealerships, this means less opportunity to deliver vehicles to a client and, hence, less income potential. This will lead to more pressure tactics in selling add-ons such as an extended warranty, rust proofing, etching, and so on. Also, as these dealerships lose potential income, their employees’ jobs and livelihoods will eventually be on the line – salespeople, mechanics, lot people, receptionists – all of them!

Second, the delay in parts could be much more catastrophic. For small mechanic shops it could be the difference between being able to survive and for dealerships, it is just one more diminished revenue stream. For consumers, it could mean not being able to fix a car and driving around a car that poses a risk to them and others on the road. Further, for any consumer looking to buy a quality used car, how can you know for sure that all previous issues have been fixed without the availability of the proper parts?

All in all, this is not a good situation for the auto industry and its clientele in Canada.

One of the steps we, at Automall Network, take to help our clients is to ensure any used vehicle we are acquiring for our clients has been thoroughly inspected by an approved licensed mechanic before completing the deal.

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