The auto industry faces a new challenge as a shortage of railroad cars is causing delays in new vehicle deliveries. This shortage has led to at least 70,000 new vehicles being stranded across the country, unable to reach dealerships. The problem has prompted the Alliance for Automotive Innovation, the auto industry's lobbying group, to ask the US Surface Transportation Board to intervene.
The shortage of rail cars is particularly concerning because freight rail typically moves almost 75 percent of new vehicles and carries 1.8 million carloads of auto parts each year. The backlog of finished vehicles is disrupting the automotive supply chain, which is still recovering from the semiconductor chip shortage. The delays in delivering vehicles are having a significant impact on suppliers, employees, and the U.S. economy as a whole.
