• By The Financial District

Chip Shortage Slows New Car Sales In Germany

In Germany, the market for new cars remains sluggish due to the shortage of semiconductors, according to recent research, Deutsche Presse-Agentur (dpa) reported.

Photo Insert: The transparent factory of Volkswagen in Dresden, Germany

That means car dealers and carmakers have little reason to offer incentives, said Ferdinand Dudenhoeffer from Germany's Center for Automotive Research.

"The German car market is suffering from the semiconductor crisis and new car buyers are stuck with long delivery times and higher net prices."

Discounts offered on internet platforms for personalized new cars fell in July compared to the previous month, the institute reported.

Car subscriptions offered also fell, a relatively new distribution model where customers rent their car for a few months, including insurance.

Business: Business men in suite and tie in a work meeting in the office located in the financial district.

The situation for people looking to buy new cars is not likely to improve for another nine to 12 months, Dudenhoeffer said.

Carmakers and electronics manufacturers are struggling with a global shortage of chips partly due to the surge in demand for computer technology as people worked from home due to the outbreak of COVID-19.


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