Day: January 21, 2021

Chip Shortages Could Cripple Global Auto Makers Until 2023, While More Negatives Gather

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
. Traditional automakers seeking to revolutionize their production by switching from internal combustion engines (ICE)

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