During the earliest days of the COVID-19 crisis, automotive headlines focused on the massive drop in vehicle demand. However, for over a year now, supply-side issues have become more of a concern. Despite unexpectedly high vehicle orders, a lack of automotive semiconductors is pushing OEMs to shut down manufacturing lines or drop some well-liked features, such as heated seats, from their product lines.
The client wanted to understand the list of strategic decisions taken by automotive manufacturers in order to increase their accessibility of semiconductor chips and overcome the challenges in the supply chain. The challenges include: