ARTICLE: An update on semiconductor shortages

ARTICLE: An update on semiconductor shortages

Running your vehicle 14 Sep 2021


What does a microchip shortage mean for vehicle orders?


Millions of products, not just vehicles, are impacted by a global supply shortage of a microchip known as a semiconductor – you might have read about this in the news.

Vehicles increasingly contain more equipment which is reliant on the use of microchips, so much so that the Society for Motor Manufacturers and Traders (SMMT) has reported that semiconductor shortages are stalling vehicle production.

Despite the shortage, we know that manufacturers are working hard to fulfil orders, prioritising electric vehicles and, in some cases, adjusting vehicle specifications in order to maintain production levels. 

To help manage any impact, we would encourage you to plan ahead as much as possible and contact us so we can work with you to secure new vehicle orders or find alternative options to meet your mobility needs.

Yours faithfully,

Paul Hyne,

Commercial Director, Arval UK



What is Arval UK doing to reduce any impact on fleets and vehicle orders?

We have strong relationships with manufacturers and dealers in order to source vehicles and we are working hard with them to ensure orders are delivered as quickly as possible.

Broadly speaking, manufacturers are prioritising EV orders and we are also proactively making tactical purchase deals to secure volumes of stock vehicles in advance, so some models are immediately available.

There are also flexible options available for you:

  • We can extend leasing contracts for existing vehicles, where this is the best solution for your needs
  • Using our mid-term rental fleet, we can provide flexible shorter-term solutions if you need to access vehicles while orders are being manufactured
  • We can discuss vehicles which are already in stock, to meet your immediate requirements


What does this mean for delivery dates?

We work with estimated delivery dates provided by the dealer or manufacturer. Although a large volume of vehicles are still being delivered, due to the microchip shortage the estimated delivery date may change significantly.

If your order is affected, we will work with you to discuss flexible options to ensure you and/or your fleet remain mobile during the shortage.

Who should I contact to discuss an order or vehicle delivery date?

Your Arval Account Manager is best placed to discuss queries relating to specific individual orders. For broader discussions around policy changes and extensions, please speak directly to your Arval Business Manager.

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