A closer look at an ongoing supply snag just before EVs explode into the mainstream.
We all can agree that today’s automobiles are not a “grease monkey’s” dream. They are definitely a sleek piece of technology that even Jobs and Gates wouldn’t have imagined back in their garage days. “Intel Inside” is more relevant to today’s cars than the good old Dell and Compaq ads of yesteryear. But with technology advancements new “opportunities” arise – particularly in the area of planning and logistics to be able to procure those finely tuned, cleanly and specially manufactured tiny little wonders called silicon chips.
In order to make the new auto technology wonders, a large number of computer chips need to be created and available. But what happens when there aren’t any?
How will this global supply shortage change the relationship with the customer? It’s an interesting question not only because of the customer service issues related to inventory availability, but also because COVID-19 has led to a digital transformation on the part of the customer. With a more digitally savvy customer, staying in front of service issues is a growing industry challenge. How will it resolve? You can bet we’re watching this closely and will update when we learn more.
If all of these struggles today mean a steady supply line and better products for tomorrow, this may yet be a blessing in disguise for manufacturer and customer alike. Let’s see what happens next!
2019: Semiconductor Engineering: How to Build an Automotive Chip
Feb. 4, 2021: GM hit by chip shortage, will cut production at 4 factories
Feb. 9, 2021: Nissan lowers sales forecast as CEO acknowledges disruption caused by chip shortage
Feb. 15, 2021: Stellantis extends production stops in Italy over chip shortage
Feb. 23, 2021: Semiconductor Shortage Halting Car Production across North America
Feb. 24, 2021: Biden signs executive order targeting America's supply chains in critical areas
Feb. 25, 2021: Analysis: Hyundai bought chips when rivals didn't; its assembly lines are still rolling
Mar. 15, 2021: GM builds some 2021 pickups without certain modules due to chip shortage
Mar. 18, 2021: Ford to partly assemble some vehicles, idle two plants due to global chip shortage
Mar. 22, 2021: From chips to seating foam to plastics, parts shortages continue to cripple auto industry
Mar. 25, 2021: Intel is spending $20 billion to build two new chip plants in Arizona
Mar. 29, 2021: Hyundai Motor to suspend some South Korea output due to chip, component supply issues
Mar. 30, 2021: Semiconductor shortages a ‘perfect storm’ to hobble connected vehicle development
April 13, 2021: GM able to 'mitigate' some chip shortage production impact