Auto Supply Chain Challenges
When the COVID-19 epidemic was at its worst and borders were blocked and businesses were closed, the auto sector was badly hit by supply chain disruptions.
Supply chain concerns make it challenging to replace items that have been stolen. A temporary set of wheels may be difficult to locate in the meantime due to rental car constraints and labour limitations that make it challenging to get the required repairs. The cycle continues as car theft becomes more profitable as vehicle prices rise and supply declines.
There are various factors creating this perfect storm:
- Russia-Ukraine conflicts: There is a shortage of semi-conductors. Neon gas is necessary for the creation of semiconductors, and Ukraine produces more than half of the world’s semiconductor-grade neon. The conflict between Russia and Ukraine is boosting the underground market for auto parts.
- Backlog in production: Along with reducing supply, the production backlog has also increased the cost of both new and used cars. Every vehicle is at risk, but all these reasons help to create a black market, especially for well-known automobile types.
- Increased Vehicle price: Vehicle costs in Canada reached record highs in 2022, possibly reflecting a bigger economic issue that might have a significant impact on household budgets.
Protecting yourself (as well as your present car) is crucial.
Read more about auto supply parts, purchasing problems & pricing, as well as tips to protect your vehicle: https://www.wawanesa.com/canada/blog/auto-supply-hot-topics
Talk to our Brokers today, and make sure you’re fully insured for any customized choices and necessary auto coverage.