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COMMENTARY: How to strategically drive success during inventory shortage Photo credit: ZikG / Shutterstock.com By Jade Terreberry ATLANTA -  As pandemic-induced supply-chain disruptions have sparked a global chip shortage, the automotive industry is experiencing the resulting ripple effect of inventory scarcity. Industry-wide data shows that consumer demand is up, evidenced by higher lead closing ratios, higher gross profits and more total sales on a month-over-month basis. Yet according to Autotrader, new-car inventory is down 17% and used-car inventory is down 11% month-over-month from February to March 2021. Automakers and dealers surely feel the impact of the chip shortage problem amidst the growing supply crunch, and success will depend on how they confront these challenges. In trying to balance the current supply-demand equation, dealers have a unique opportunity to innovate, differentiate, gain market share and ultimately thrive.

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