Damon Skates said Tuesday that strong sales of new vehicles coupled with the semiconductor chip shortage at the automakers are leading to a scarcity in cars, trucks and SUVs at dealerships.
“The lots don’t look pretty out there, but sales are good,” said Skates, the general manager of Jackson Chevrolet Buick GMC in LaFayette, Georgia.
While Memorial Day weekends historically mean high auto sales, dealers are grappling with low inventory levels. Nationwide, there are nearly 1.4 million fewer new vehicles in inventory at dealerships this May versus a year ago, or a 42% reduction, according to the research firm Cox Automotive.
Skates said that a good percentage of the vehicles his dealership has on order are already sold.
“It will be a little while before inventory starts to build,” he said.