How can automakers navigate the chip crisis?

The automotive industry is used to supply chain disruption, but not all OEMs have responded in the same manner, writes Freddie Holmes

A scarcity of components can impact the operations of any manufacturer, but the chip crisis has been a little different to typical supply chain disruptions. While exacerbated by obvious pandemic-related issues, it is ultimately a result of the move toward smarter devices in virtually all industries. The automotive sector is but one of these competing for chips, and the current crisis will roll on until everyone’s needs are met.

The shortage could not have come at a worse time. Some might be further along than others, but all automakers are now in the process of rolling out new generations of electric, connected and partially automated vehicles. General Motors, in particular, has made much fanfare of its new Ultium platforms that will underpin models such as the fully electric Lyriq and Hummer SUV.

The analogy that modern cars are smartphones on wheels is now outdated; they are in fact becoming supercomputers on wheels. This means that once niche, low-volume features are moving into the mass market in huge numbers. It is no coincidence that the chip crisis hit during this transition.

The automotive industry is more reliant on chips than ever. The challenge is that many other sectors are in the same boat

Even with

It’s time to log in (or subscribe).

Not a member? Subscribe now and let us help you understand the future of mobility.

Monthly Online Magazine
£195
1 user
12-month subscription (Annual rebill)
Access to Automotive World Magazine, our must-read monthly online publication
Mag + Articles + Special Reports
£495
1 user
12-month subscription (Annual rebill)
Access to Automotive World Magazine plus all articles and more than 40 special reports per year
All Content
Single-User License
£2,250
1 user
12-month subscription (Annual rebill)
Free tickets to Automotive World events
Unlimited online access to all content, including Automotive World magazine, articles, special reports, data and research
All Content
Team License
£3,950
Up to 5 users
12-month subscription (Annual rebill)
Free tickets to Automotive World events
Unlimited online access to all content, including Automotive World magazine, articles, special reports, data and research
All Content
Company-Wide License

Contact us for pricing

Unlimited users
12-month subscription
Free tickets to Automotive World events
Unlimited online access to all content, including Automotive World magazine, articles, special reports, data and research

Welcome back , to continue browsing the site, please click here