"The shortage of chips has led automakers around the world to shut down production lines," a senior in the automotive industry told Israel Today.
According to him, due to the shortage, the chip makers are holding an auction of chips, in order to get the highest possible price.
According to him, for the first time in the industry, "manufacturers make vehicles more expensive even after we placed the order, because they could not anticipate the prices of the components."
The same senior official added that "even before the end of the year, a significant increase in the industry is expected. In the meantime, we have raised prices by only 4% -3%."
Sea freight costs have also risen by hundreds of percent, affecting price.
But beyond that, importers are reporting a shortage of vehicles.
"Significant decrease in production"
According to Sergeant CEO, importer of Subaru, Jeep, Fiat, Alfa Romeo and more, Shai Feldman: "The car market produces 90 million vehicles in a normal year.
Last year, as a result of the corona, production volumes dropped significantly because factories had to adapt to new forms of work, and work volumes dropped by 10 million vehicles.
In the current year the problem is different - the problem of supply of the chips.
As a result of the corona there is a very high demand for household electronics, which require components that are also used in vehicles.
At the world level there is talk of a decrease in production power of between 10% -15%.
However, there is an increase in demand in Israel.
Today, many models in the most powerful vehicles have a waiting period of three months, and even half a year.
For example, whoever buys a Subaru Forester now or the new Fiat 500 tram will get them at best in the first quarter of next year. "
"Offer a basket of solutions"
He said: "The dialogue with the manufacturers starts at this stage of the year. As a result of the production costs rising significantly, not only of the chips but also of the iron, the manufacturers will also have to raise prices next year. I guess it will be between a few percent and 10%." .
According to Galit Eini Wolf, CEO of Mizrahi, an importer of Jaguar and Land Rover: "The demand is greater than the supply of Jaguar and Land Rover.
Not only in Israel, but also in the world.
The reason is the supply chain being interrupted.
It starts in the chip factories and continues in the assembly plants, as well as in all the sea transportation.
At the moment, until the balance between demand and supply is restored, we collect orders and offer customers a basket of solutions, until the vehicle they ordered arrives. "