Chip Shortage - S3

As the impact of the more than yearlong coronavirus pandemic began to
subside, companies operating in the automotive industry had a lot to look
forward to in 2021. The vaccine rollout in the U.S. combined with growing
consumer optimism and forecasted pent-up demand resulted in an optimistic
outlook that the industry was back in a big way. Early-year sales proved it
was. U.S. new-vehicle sales in March were the strongest for the month in
more than 20 years. i And, despite the lower-than-expected April U.S. jobs
report released May 7, 2021, analysts forecast further accelerated growth in
the second and third quarters driven by a surge in consumer spending as the
economy fully reopens. ii
Still, specters of another crisis were looming before the end of 2020. In
December, automakers and suppliers began warning of a pending
semiconductor shortage that was impeding their ability to keep up with
consumer demand in China. iii
Those early warnings have exploded into a global crisis that Ford CEO Jim
Farley, in an interview with Automotive News Group Publisher KC Crain,
described as " perhaps the greatest supply shock " he's ever seen.
In late April, Ford announced it was suspending production of the F-150 and
Explorer for two weeks in May as a result of the shortage, joining Mitsubishi,
Jeep, Hyundai, Daimler, General Motors and a host of other automakers that
have announced adjustments in their production schedules because they
cannot find enough microchips.
Between April 13 and 16, 2021, the Automotive News Research & Data
Center conducted a survey of 475 Automotive News subscribers and readers
to understand their views on the crisis; explore their opinions on the
implications for national security, America's manufacturing competitiveness
and the Biden administration's plans for investment in U.S. infrastructure and
U.S.-based semiconductor manufacturing; and examine how automakers and
suppliers are navigating these turbulent times. We share their perspectives in
the following pages.

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Automotive News
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Chip Shortage

Table of Contents for the Digital Edition of Chip Shortage

Chip Shortage - S1
Chip Shortage - S2
Chip Shortage - S3
Chip Shortage - S4
Chip Shortage - S5
Chip Shortage - S6
Chip Shortage - S7
Chip Shortage - S8
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