Hyundai Motors Begin Developing Their Own Chips After Industry Shortage

The Tough Times Are Over

The previous months of August and September were some of the toughest months for Hyundai Motors because of the industry car chip shortage. Thankfully, Hyundai was able to make it through those tough months, and the chief operating officer put out a statement declaring that Hyundai will start producing its own chips and reduce their reliance on chipmakers. The shortage did not affect only Hyundai, but the entire industry which cut North American production by 1.98 million cars and trucks. After this grueling year of shortages, and losses of money, many automotive companies are on the up and up, especially Hyundai who will continue to rise in sales. 

How The Pandemic Created Car Chip Challenges In The Industry

Because of the worldwide pandemic, demands for laptops and other electronic products were through the roof causing there to be a high demand for semiconductors. This surge from electronics shattered some of the auto production lines this past year. Hyundai was then forced to suspend some factories because they would not have made it through the months. The car computer chip industry is making efforts to expand the capacity and is spending a significant amount of money to try and make it happen. Hyundai has decided a different route and would like to decrease their dependency on the industry by developing their own.

Despite The Car Chip Shortage, Hyundai Has Increased Sales

Although the months of August and September were very difficult for Hyundai Motors, their global sales have increased alongside Toyota and Tesla. After seeing the Asian market recover strongly, Munoz said that Hyundai decided not to cut orders during the pandemic; thus, not slowing doing their business. 

Turning The Corner On The Car Chip Shortage

By the fourth quarter, Hyundai wants to be back on track and produce cars and trucks for the U.S. market line with its original business plan. Hyundai plans to plant the new microchips in their vehicles by next year. At the end of May 2021, Hyundai announced that they had a 56% sales increase from the previous May, setting a company sales record. Comparing Hyundai to companies like Ford, whose losses range between $1 and 2.5 billion, Hyundai is doing extremely well despite the hardships. 

Did Hyundai Predict The Microchip Shortage?

Speculation has risen about whether or not Hyundai foresaw the car chip shortage and stockpiled them because it would easily explain their successful sales they have had compared to many other automotive companies. During the pandemic, the sales chief, Randy Parker, focused on selling the best cars that companies offered like the Elantra, Tucson and Santa Fe and focused production on these vehicles. Even though Hyundai shut down production in the month of April they are still doing far better than other competitors. Whether or not they planned on the car chip shortage, the development of their own chips for cars will become a very important aspect of the business plan and continue to help them succeed in the automotive industry. 

Hyundai’s Best Sellers And How They Made it Through Shortage 

Hyundai has always been known for developing vehicles at a respectable price. The Tucson being one is a best seller for a simple reason: the compact crossover delivers power and efficiency while maintaining an eco-friendly standard. The Santa Fe is another best seller because it was awarded a Top Safety Pick award for it’s a modern design and excellent technological advancements. Lastly the Elantra has claimed its spot on the bestseller list because of its dependability and affordability. Despite the difficult times, Hyundai has pushed through and managed to maintain and develop award winning vehicles that promise safety, efficiency and affordability. 

Hyundai’s Best Selling Vehicles Are Available In Oklahoma

We know that with the pandemic, times have been difficult for many people and industries, but things are looking ahead and good times are around the corner. If you are in need of a new Hyundai, we would be happy to provide you with one at Edmond Hyundai. To find out more you can visit our website, give us a call at 405-696-4936, or come to the dealership at 14137 N. Broadway Ext. Oklahoma City, OK 73013. We have all of the best sellers, from the Tucson to the Elantra, along with the rest of the Hyundai vehicle lineup. Check out our new car inventory and continuously changing used car inventory. We’re happy to schedule a test drive of any of our vehicles so you can see and feel how they operate. We look forward to seeing or hearing from you. 

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