CURRENT SITUATION ON THE CAR MARKET
The lack of chips, bundled cables or access to commodities makes the purchase of a vehicle extremely expensive
Did you know that car manufacturers are once again limiting production, cars are extremely expensive and delivery times are more than 12 months.
This is also a consequence of the crisis in Ukraine. Car manufacturers in Europe have not yet recovered from the chip crisis caused by the COVID-19 pandemic and are now facing a new challenge in the form of a lack of cable harnesses. Ukraine is a key supplier of cable harnesses to all major car manufacturers in Europe. Production is still in progress, but the last stocks available are being used. This is one of the reasons why some carmakers are already interrupting production, as they are unable to complete the cars produced.
This also applies, for example, to the Volkswagen plant in Bratislava, which is already limiting production and preparing to reduce the volume of vehicle production. The cable harnesses are needed directly in the vehicle production process and cannot be reassembled later in the completion of the vehicle, as was the case with some additional equipment elements due to the lack of chips.
This shortage is seriously affecting production capacity across Europe, putting even more pressure on the production price of the vehicle itself. The car thus becomes a luxury item inaccessible to a mass of people. The situation is beginning to be similar, as we remember before 2000, in our region as well.
The pandemic shows us that the just-in-time production-supply process appears to be inefficient in the event of supply chain failures, and carmakers will have to come up with a solution for keeping raw materials and parts in stock as soon as possible. However, this will make production considerably more expensive.
An even more significant impact on car prices is likely to occur in the summer and autumn of this year. In the next month or two, the market could still experience a potential surplus of cars that could occur in Europe with cars, as carmakers such as FORD, VOLVO, BMW, AUDI and others have already announced a total ban on car sales in Russia. The question is whether there will actually be a surplus or just satisfy the demands of clients who have been waiting for their ordered car for more than a year.
The starting point for this situation can be car rental for people and companies , where the worries about procuring the vehicle and the overall operation fall on the head of the service provider. Whether renting a vehicle for short, medium or operational leasing can be an ideal solution in today's truly uncertain and economically unsustainable situation in which the car market finds itself.
See our offer of long-term rental vehicles HERE. These cars are immediately available and we guarantee unbeatable prices.
