The global shortage of semiconductor chips has upended the car industry. The response, from retrofitting to reshoring, could help guide other sectors.
In 2021, hamstrung by the global microchip shortage, the automotive industry lost more than $200 billion. Eleven million fewer vehicles were produced; manufacturing plants idled. Ford suspended operation at some plants to focus efforts on truck assembly, where the margins are better.
“Dealer lots are empty,” said Jessica Kelly, who has spent more than 20 years in the automotive industry, most recently as the senior director of offering management in advanced driver-assistance systems at NI (National Instruments). “I’ve never seen anything like this before.”