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The Chip Shortage Will Be Over but the World Would Be a Whole Lot Different by Then

The car industry seems paralyzed at the moment due to the chip shortage and supply chain constraints. Everyone talks about building more chip foundries and how the whole process of building cars would revert to “business as usual” in a couple of months, give or take. But the world is a-changing, and even when the chips will stop being a problem, the carmakers might not necessarily be in a better position.
Almost one in three Americans consider giving up owning a car 8 photos
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Every generation has its own preferences, personality if you will, and this is significantly distinct that it’s enough to define people and change society. Many people talk about millennials as being a disruptive force in society, but the following generations are just as willing to transform the world they live in. When it comes to owning a car, younger people are increasingly willing to give up completely, which may pose a threat to the car industry as we know it.

A recent study by ConsumerAffairs shows that the recent supply problems reshaped the car market completely. While many people settled for whatever vehicle they could get hold of, a lot of others gave up the search altogether and considered going carless. This is especially true of the younger generations, who are more willing to adopt alternative transportation means.

According to the survey, 27.6% of Americans are likely to go carless in the near future, with a further 20.8% willing to take this option into consideration. But this is not the same for everybody, and the study shows 40.5% of the Gen Zers as opposed to only 14.9% of the baby boomers are willing to give up the car completely. This should worry the carmakers as there might not be a market for their products 20 years from now when younger generations will have their say.

As alternatives to owning a car, many younger people favor using public transportation (34.6%), walking (32.4%), or using ride-sharing apps (31.2%). At the moment, many Americans still do not see ride-sharing or carpooling as viable options due to the pandemic. Once this is over, though, owning a car would not make much sense for younger people in the urban areas.

With these trends taking hold in the future, it’s easy to see that electronic chips becoming cheap as chips and abundant would not return the auto industry to the pre-pandemic boom. Some big players see it too, and we consider GM investing in the Cruise ride-hailing venture a smart move.

 
 
 
 
 

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