Train wagon shortages leave 70,000 new wagons without many dealers as supply chain problems continue

Since the start of the COVID-19 pandemic, the auto industry has had to deal with shutdowns, chip shortages, supplier and material shortages — all while trying to quickly shift direction to new markets. new electric car service. While we still haven’t been able to completely eliminate all of those problems, cars are back in production and we’re seeing more and more of them. New products hit a lot. But, there could be more. Now, it looks like a shortage of train cars is keeping cars from reaching dealerships and consumer garages.

Industry regulators estimate more than 70,000 brand-new wagons could not be delivered to dealers because there were not enough wagons, according to the report. Detroit free press. Rail cars are essential for the automotive industry and for transporting cars from factories to dealers. According to John Bozzella, CEO of Alliance for Automotive Innovation, every year, more than 75% of all new vehicles in the US are transported by wagon. With so many vehicles moving every year, if there were a shortage of carriages, you can see how serious this situation would be.

For example, a person familiar with the Fort Wayne Council of General Motors in Indiana told the Detroit Free Press that there are thousands of finished Chevrolet Silverado and GMC Sierra pickup trucks parked in the Fort Wayne area and with no wagons. to transport them to the market. The person asked to remain anonymous because they are not authorized to share that information publicly.

All these particular carriages are part of a large share group used by many railway companies. Called “rails,” these specific carriages account for only 20 percent of the 1.6 million freight cars currently available. And it’s not like you can do more to fix the problem. These rails take two or three years to manufacture.

Shortages have gotten so bad that automakers have had to reduce production so as not to leave a lot of finished cars around factories. Federal agencies say free of charge they are aware of the situation, but don’t say much about how they will fix it. However, major rail companies such as CSX and Norfolk Southern said they were working on a fix. Solutions can’t come soon, as if cars can’t leave the factory, why make more?