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Bought a new car? You may only drive it next year
Car industry

Bought a new car? You may only drive it next year

by Heledd PRITCHARD 2 min. 21.10.2021
Car buyers facing waits of several months for delivery due to a global shortage of key parts, warn representatives of sector in Luxembourg
Cars on display during the Autofestival in Luxembourg
Cars on display during the Autofestival in Luxembourg
Photo credit: Lex Kleren

A critical shortage of materials in the car industry is causing deliveries of new vehicles to be held up by several months, and the delays could continue into next year, representatives of Luxembourg’s automotive sector warned on Thursday.

The global supply shortage initially only impacted some optional car parts but has now spread to essential parts for a “large number of cars from almost all makes”, said the House of Automobile, a group of three organisations within the industry in Luxembourg.

“As a result, the delivery dates initially communicated to clients cannot be respected and in certain cases there will be a delay of several months,” the group said in a statement. “There is a risk that this situation continues into 2022.”

A global supply shortage, mainly due to high demand from the USA and China and the knock-on effects of the pandemic, has led to both a surge in material costs and long waiting times for deliveries across many industries.

The building sector has been hit hard by the shortage, resulting in some construction works coming to a standstill, either due to long delays or because some materials have more than doubled in price.

In the car industry, there is a shortage of several key parts, in particular of microchips, which is having a “dramatic” impact on car production, the Luxembourg group said. It is impossible for sellers to say when cars will be delivered because the “situation changes every day”, they added.

Luxembourg has one of the highest rates of car ownership in the EU. Two-thirds of all journeys made in the country as well as neighbouring France and Belgium take place in cars, according to a survey by the LISER research institute in September.

Transport is responsible for nearly two-thirds of Luxembourg’s greenhouse gas emissions and the European Court of Auditors said last month the country was facing an uphill struggle to reach climate targets it has agreed with Brussels.

Last year, there were around 45,000 new car registrations in Luxembourg – down from 55,000 in 2019, according to figures from the country’s national automobile society, the SNCA. Last year’s figures were the lowest since 2003, when just under 44,000 new cars were registered.

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