Chip Shortages Could Cripple Global Auto Makers Until 2023, While More Negatives Gather
3d illustration of microchip over white background with car and binary code inside
Even the most ardent glass-half full defenders of the automotive industry might be getting a bit nervous as more existential surprises spring out of left-field.
Automotive industry investors braved the coronavirus-inspired sales slump in 2020 hoping for a sharp “V” shaped recovery. The virus returned and the “V” was flattened, but long-range forecasts still promised sunlit uplands, soon. Now the industry has been blind-sided by another crippling, unscripted guest, a shortage of microchips. This seemed at first like maybe a month-long problem, but it could last until 2023, according to industry analysts at Fitch Solutions.
At least these problems look solvable and promise a return to profitable business as usual.
Except for this new bombshell from investment bank Morgan Stanley