Last year's historically low auto sales reflect a global microchip shortage that forced carmakers to limit output or ship some vehicles without fully functioning features.
The recent announcement by Ford Motor Co. that it was planning to develop and produce at least some of its own semiconductor chips signals a sharp reversal of a decades-long practice.
Carmakers like Volkswagen and General Motors should brace for the global semiconductor shortage to last beyond next year and redesign cars so they need fewer of the high-tech components, according to analysts.
President Biden said his administration’s work has begun to alleviate supply chain disruptions and that higher inflation is a “natural byproduct” of the global economy’s recovery from the pandemic.
Soaring commodity prices and supply chain bottlenecks are threatening to push up the cost of batteries seen as crucial in the fight against climate change.
President Biden signed the $550 billion measure at a White House ceremony on Monday, after appointing a group of officials to guide the law’s enactment.
The Biden administration spurned a plan by Intel Corp. to increase production in China over security concerns, dealing a setback to an idea pitched as a fix for U.S. chip shortages.
Richard Kilgore, associate professor of management and business administration at Maryville University, describes the plight that automakers are currently facing, due to multiple causes of disruption in the supply chain.
The latest supply-chain news, analysis, trends and tools for executives in the automotive industry — which consists of companies that produce automobiles, utility vehicles, motorcycles, all-terrain vehicles and heavy trucks. Learn how automotive companies and their suppliers around the world are managing the flow of products across all channels of the enterprise. Experts sound off on forecasting and demand planning, supply-chain visibility, logistics outsourcing, inventory optimization, transportation management, warehouse management, supply-chain security, corporate social responsibility and more.
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