The Microchip shortage is just one major obstacle that has been plaguing the auto industry over the past few years. Though we’ve seen ups and downs and innovative solutions to bypass the issue, it remains, and it looks like it may continue to do so until late 2023, according to Stellantis CEO Carlos Tavares.
Auto Industry Microchip Shortage (Slowly) Alleviating
According to Bloomberg, Carlos Tavares expects the situation to loosen after that, partly because the consumer electronics market is declining. Additionally, the tens of billions of euros invested in Europe and the US to foster local microchip industries will help boost supply in the long run, to the point where we may see an “overabundance.” But that likely won’t be until three years from now.
During the Covid-19 pandemic, the dedicated industry of microchips shifted its focus to consumer electronics, which is why car manufacturers have been facing such difficulties. Unfortunately, though, consumer electronics haven’t faired well either. At the time, carmakers had also lowered their microchip orders as potential customers could not go to dealerships to order or purchase new cars. Now, those decisions have come back to bite as many manufacturers have more reservations than they can keep up with, setting back some deliveries several years into the future.
While another year of microchip shortages and sluggish vehicle production will prove complicated for the auto industry, it is promising that things are predicted to improve, and we may see the industry return to its former glory. Especially if we have more microchips than we know what to do within three years, some manufacturers have been unable to piece together a car for something as minor as missing the suitable chip to ensure customers can roll their windows up and down. We doubt people will be keen on having cars adopt the hand crank alternative that has long since disappeared from new vehicles.