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Alex McLenon
Industry experts warn that assembly line production could slow in the coming months as the automotive sector navigates microchip supply chain issues.
Detroit’s car companies surprised many analysts late last year, as the industry showed signs of bouncing back from the COVID-19 pandemic. However, a global shortage of small electronic parts, referred to as “semiconductors” or “microchips,” could pose a threat to that recovery in 2021.
Analysts say an increase in demand, fueled in part by consumer trends during the pandemic, is the catalyst for supply chain issues. They say as new vehicle production slowed to a halt last spring, the consumer electronics industry picked up the automotive sector’s need for microchips.