The global auto sales industry faces a significant shortage of microchips, driving down inventory for dealerships in the Valley region at a time when inflation has spiked sales prices for the cars on the lot.

“There has been some rubber and steel supply chain disruptions that kind of remedied themselves pretty quickly. It’s the chip that is the long-term play,” Bob Smith, executive director of the Greater Los Angeles New Car Dealers Association, said. “It’s taking its time to work, you know, to get the supply chain flow back to where it was. It is not a quick fix.”

Smith’s uncle, Tim Smith, owns Bob Smith BMW in Calabasas, No. 20 on the Business Journal’s list of Auto Dealerships.

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