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- A strange combination of events caused the automotive industry to lose much of its supply of the little chips early in 2020. As the COVID-19 pandemic triggered travel restrictions, demand for new cars plummeted. Automakers trimmed their production plans and reduced their orders for new microchips.
www.kbb.com/car-news/is-the-end-of-the-chip-shortage-in-sight/ - People also ask
Why the heck is there still a chip shortage for cars? - CNET
Overall vehicle production was dramatically reduced in 2021 because of the chip shortage. According to Jeff Schuster, president of the Americas operation and global vehicle forecasting at LMC Automotive,"Ford was hit the hardest and they were hit early." This is because it had several super-high-profile launches, … See more
The auto sector employs some of the brightest and most prescient people of any industry. They're used to planning things out years in advance … See more
Still, there are a couple options to ensure a reliable supply of automotive-grade chips in the coming years. Foreign companies can increase capacity, or we could make more of them here in the US. Schuster said both strategies are likely key to solving this issue … See more
If there's any good news in all this, vehicle demand remains strong and companies are able to sell whatever cars and trucks they can build. Schuster said the chip shortage should ease this year, though LMC Automotive projects it will likely take all of 2022 and … See more
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