Computer chip shortage leads to less cars on dealer lots in Borderland, nationwide

EL PASO, Texas -- A computer chip shortage is squeezing the inventory of available vehicles at car dealerships in the Borderland and across the nation.

“A ten dollar chip that controls a seatbelt might hold the vehicle there at the factory,” Mission Chevrolet General Manager Jerry Slaughter explained to ABC-7.

According to Slaughter due to the pandemic, many people worldwide bought laptops and computers in order to work from home or for school virtual classes.

“As a result of the pandemic, a lot of the automakers cancelled orders (chips) because people were not traveling and they estimated the sales would be slower," he added.

However, as car sales picked up, auto manufactures scrambled to resubmit their previous cancelled orders - but by then it was too late, Slaughter said.

He indicated that while there is less inventory on dealer lots, many customers can still find a vehicle to fit their needs.

"Instead of the red one, they will have to get the blue one," Slaughter said.

Slaughter told ABC-7 that custom packages for vehicles are currently taking around 6 weeks on average to be delivered; he expects the automotive industry to be back on its feet by June or July.