Magnesium shortage could further intensify dealer demand for used car stock, warns ADESA UK


16 November 2021 The high level of demand for used car stock is expected to intensify as a result of the disruption to the supply of magnesium needed for new car production, warns ADESA UK. 

Magnesium is an essential raw material in the hardening of aluminium alloys used in the production of car components from gearboxes and steering columns to seat frames and fuel tank covers. However, global supply has been hit by a power crisis in China, the main producer of magnesium, forcing some smelters to close until the end of the year. 

Jonathan Holland, Managing Director of ADESA UK, said the wholesale sector is now bracing for further increases in demand from dealers for stock. 

The magnesium shortage will be a further blow to new car production, following the ongoing impact of the semiconductor shortage, so we expect to see even more new car buyers switching to used cars for their next purchase,” he said. 

Across the wholesale sector the demand for stock is already outstripping supply, so this will further intensify the pressure on dealers to restock.  

“This latest setback emphasises the need for quick online access to stock, so we will continue to work hard with dealers to source and remarket the stock they need,” added Holland. 

As part of this process ADESA UK is helping a growing number of dealers to trade-out unwanted vehicles and part-exchanges and source stock from other retailers on its UPSTREAM platform. 

In the current climate speed to sale is essential. The last thing a dealer needs is an unwanted car in their inventory. This is why we’re ramping up our digital trade-out service to enable them to offer these vehicles to other retailers and replenish their stocks – one dealer’s unwanted car is another’s sure seller,” he said.  

ADESA UK, a subsidiary of KAR Global, is a specialist online vehicle remarketing provider for OEMs, fleet and leasing companies and dealers, using a combination of industry expertise and cutting-edge digital technology to transform the way used vehicles are bought, sold and processed.  


Media Inquiries:

Jill Trudeau

001 317 796 0945 

Analyst Inquiries: 

Mike Eliason

001 317 249 4559 

About KAR 

KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 3.1 million units valued at over $40 billion through our auctions in 2020. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Europe, United Kingdom, Mexico, Uruguay and the Philippines. For more information and the latest KAR Global news, go to and follow us on Twitter @KARspeaks. 

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