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IT’S being called the “multi-million dollar industry headache that won’t go away” – the partially-completed new vehicles clogging up open spaces near car factories that are now poised to be sent off to occupy vacant parking bays at franchise dealerships.

The headache is caused by the semiconductor shortage and the result is unfinished vehicles that the factory has continued to build, but with the essential chips still missing.

The latest case is Ford which is considering sending unfinished vehicles to its dealers with the aim that they will retrofit the chips.

Automotive News reports that Ford has been making some models without the chips and storing them on spaces in several states and sending them to the dealers when the chips are installed and the vehicles are complete.

But the storage spaces are filling up fast and manufacturing is continuing, so Ford is looking for a solution.

According to Automotive News, the brand is looking at sending unfinished vehicles to dealerships who agree to the plan.

Dealers would get training for their technicians to install the chips when they become available, and would receive payment from Ford for their work.

In response, Ford said the idea was “one option” being explored to get vehicles to customers as quickly as possible.

The Blue Oval isn’t alone either with General Motors reportedly also building vehicles without certain parts.

In a statement, GM said: “When there is a shortage of semiconductors that impacts production, in some cases we intend to build vehicles without certain modules and will complete them as soon as possible.”

“This will help us quickly meet strong customer demand as more semiconductors become available.

“Several of GM’s plants have recently utilised this process and we will complete those vehicles as soon as possible.”

The idea may be possible in the US, but a similar plan wouldn’t work in Australia because it would be illegal under Australian Consumer Law (ACL) legislation.

Pitcher Partners’ Steven Bragg told GoAutoNews Premium that “it would be very risky to ‘park’ the unfinished goods at a dealership as it could lead to vehicles being inadvertently sold to customers in breach of the ACL”.

“This is the first time I have heard of OEMs considering storing unfinished vehicles in a dealer’s care,” he said.

“I have, however, heard of factories building inventory and parking them in their own yards waiting on components.”

Steve Bragg

By Neil Dowling

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