Still, any impact on dealers’ service and parts business is unlikely to be as severe as the havoc being wreaked on car companies, which have been forced to shut down plants, he said.
“It will not be as grave as the [vehicle] supply issue,” he said. “Manufacturers have had to stop production, and that impacts thousands and thousands of vehicles.”
SOME CANADIAN PLANTS IN FOR ROLLER-COASTER
The lack of chips had repercussions throughout global vehicle assembly, and Canada’s plants are no exception.
Ford Motor Co.’s Oakville, Ont., factory appears to have taken a particularly big hit. The plant, which builds the Ford Edge and Lincoln Nautilus crossovers, was shut down for all but 10 days during the first two months of 2020 due to the chip situation and a parts shortage caused by extreme winter weather in the United States, according to Unifor, the union that represents the plant’s workers.
AutoForecast Solutions LLC, meanwhile, expected the Oakville plant to be down one or two weeks every month through August. The forecaster estimated an impact of 33,141 units at the plant, which would constitute 23 per cent of Oakville Assembly’s total 2020 output and 13 per cent of its 2019 production.
“It will be very difficult to recover those units this year,” said Sam Fiorani, vice-president of global vehicle forecasting.
When asked for comment, Ford said in a statement that it had “announced the downtime we’ve currently planned.”
Meanwhile, General Motors said in March that it would extend downtime at its Ingersoll, Ont., plant until at least mid-April. And Stellantis said that the shortage could last into the second half of 2021 and could dampen earnings.