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4 wheel buses
Chip Shortage: What it Means for Bus Lead Times
Brad Palmer
Commercial Sales

The global computer chip shortage has hit several US industries hard, especially the automakers. The semiconductor chip is a crucial component in new vehicles and its scarcity has affected the automotive supply chain from top to bottom. Some manufacturers have completely halted production while others are left with unfinished vehicles in limbo. The disruption to the supply chain is wreaking havoc on many areas of the US economy, but what does this mean for inventory levels for buses & vans moving forward?

The automotive production industry, buses included, are expected to fall between 2% and 6% and Ford expects a 1.1 million reduced vehicle production from the shortage.

Now is not the time to panic, but to act by implementing a game plan.

Plan ahead

When you’re ready to upgrade your organization’s bus or buses, get ahead of the game. If you are accustomed to reaching out for pricing & availability, do so 30-60 days earlier than you normally would. Lead times will be increasing due to the chip shortage, so to give yourself more than enough time to replace your buses. By contacting TESCO sooner you allow more time for your bus representative to find plenty of options and competitive pricing.

Get creative

TESCO offers a wide variety of inventory, both new & used. If you have an immediate need for a bus without the ability to wait, ask your representative to provide you with pricing and availability on some late model, low mileage, pre-owned buses. Our used division takes pride in providing refurbished & road ready vehicles for customers needing immediate availability.

Stay informed

Every sales representative at TESCO is updated weekly on the shortage, so continue to keep in touch to make sure the best decisions can be made for your fleet. By taking a proactive approach, staying informed, and communicating with your sales rep, you can increase your chances of a timely bus purchase and delivery.

If the pandemic has taught us anything, is that setbacks are a part of the journey. The chip shortage will not last forever, and TESCO will be here every step of the way to ensure your company will be allowed the same purchasing advantages you are accustomed to.