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Chip Shortages Are Back and AI Is Cutting Jobs.
Here's What Dealers Need to Know This Week.
Adam Rafael
November 05, 2025
CURRENT EVENTS
The Chip Shortage Is Back (sort of)
Global automakers are dealing with another semiconductor supply disruption, this time sparked by geopolitical tensions between the US, China, and the Netherlands.
The Dutch government seized control of chipmaker Nexperia (owned by a Chinese company) in October, citing national security concerns. China retaliated by blocking exports of Nexperia chips made in China.
The result? Honda reduced production. VW said it has "until at least next week" before supply impacts output. Stellantis CEO said the company has a cross functional "war room" managing the situation day by day.
The good news? Signs of a breakthrough emerged over the weekend, with reports that the US and China reached a framework to allow Nexperia to resume shipments.
What this means for you: If new car production gets constrained again, expect pricing pressure on used inventory as buyers shift to the used market. We've seen this movie before. Start thinking about acquisition strategy now.
Keyloop Launches Tool to Help Dealers Show Up in AI Search
Keyloop just rolled out Generative Engine Optimization (GEO) to help dealers appear in Google's new AI powered search results.
Unlike traditional SEO that focuses on keyword rankings, GEO ensures your dealership's content is recognized and featured by AI systems that deliver direct answers to users.
Why this matters: Google is shifting toward AI generated search responses. If your dealership isn't optimized for how AI reads and understands your content, you're invisible to buyers using these new search features.
Keyloop is already a Google Premier Partner and says dealers using their Marketing Services have seen up to a 70% reduction in cost per lead through multichannel campaigns.
Major Companies Are Cutting Jobs and Replacing Them With AI
Amazon, UPS, and Target announced over 60,000 job cuts combined this year. And some are saying the quiet part out loud.
Examples:
Klarna cut its workforce by 40%, in part because of AI
Salesforce laid off 4,000 customer support roles, saying AI can do 50% of the work
Duolingo stopped using contractors for work AI can handle
UPS says that while AI isn't the primary driver of current layoffs, it will directly impact future hiring plans. As the company brings automation to more facilities, they won't need to hire as many people.
What this means for dealers: The "wait and see" approach is getting riskier. While you're watching, competitors and other industries are actively deploying AI to cut costs and increase efficiency. The workforce economics are changing right now.
Bottom Line
Major companies across industries are actively using AI to reduce headcount and cut costs. Supply chain risks are still lurking. And if you're not thinking about how AI search changes buyer behavior, you're already behind.
Thanks for reading. Hit me up and let me know what you think I should cover next week!
— Adam