Amid the global chip shortage, LeasePlan goes the extra mile to keep customers moving.

The current worldwide shortage of semiconductor chips can be traced back to the early days of the pandemic in 2020, when consumer demand for electronic goods skyrocketed. It was some time before its effects hit the automotive industry, with the first supply shortages emerging in the first quarter of 2021.

“There were two main pressure points,” says Gavin Eagle, Managing Director of LeasePlan International. “First, we started seeing limited vehicle availability. Second, it became clear that the average number of days between order and delivery was growing, month on month.”

The car production backlog grew throughout 2021, as OEMs began facing other shortages, such as a shortage of the aluminium from which most vehicles are built. On top of that, shipping capacity was lower and container costs were rising. These factors combined to create a perfect storm of delays in getting new vehicles to customers.

As a trusted leasing partner for customers and businesses of all shapes and sizes, LeasePlan acted to mitigate the impact of the global chip shortage and keep everyone moving throughout the pandemic.

“Because of the long waiting times for delivery, we reached out to customers well in advance of their re-order date, helping them place new orders as soon as possible,” explains Gavin. “Often, we recommended pre-configured vehicles and electric vehicles, which are being prioritised by manufacturers looking to meet their emissions targets. In the meantime, we extended contracts on current vehicles and offered used-car leasing solutions.” LeasePlan will continue to monitor developments closely in 2022, safeguarding our customers’ mobility.

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