A few years ago, I wrote a post about the chip shortage causing a huge disruption in the supply chain and forcing automobile price increases. This year, a new problem threatens to disrupt the supply chain and place a great deal of pressure on pricing is “rare earths” or “rare earth elements”. Simply put, they are rare minerals used in the manufacturing of automobiles and China appears to hold the majority of these minerals. This Kelly Blue Book Article Is A Good Read. Texas Car Concierge is paying attention to this because of the dangers it presents.
Some sources indicate that European auto manufacturers will be hit hardest by this shortage. Another article detailed the parts that would be affected and it’s sort of a weird list: Electric motors, oil pumps, windshield wipers, side view mirror motors, and speakers are a few examples. As far as I can tell, any parts with magnets will be affected.
China has not cut off supplies of these. Furthermore, China has signed licenses with specific automobile manufacturers allowing them to have access over time. If this process becomes the norm, then we will need to monitor each automobile company because a failure to secure this license will halt production raising prices on current inventory.
How does this affect you? Well it doesn’t yet, but we are keeping an eye on it so when you call us, we can give you the most up to date advice and by doing so, we are allowing you to make educated decisions. Dealerships don’t want you educated so we ensure that our clients are educated. We want to ensure that your next automobile purchase is made with your eyes wide open knowing all the relevant data and information. Please understand, this knowledge extends to trade ins as well.
We do this because we really are more than just a car shopping service. We do more than just look for the car that checks all the lines on a list. Information allows you to make the best decision possible. That’s what a car concierge does and that’s why Texas Car Concierge is the premier automobile shopping service in the state.
