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An Automotive Minute [S2|E44] Parts Constraints with Michael Robinet
Part suppliers have their hands full these days. After surviving more than two months of virtually no vehicle output earlier this spring – production in North America have been on a tear.
Total North American output should reach 13 million light vehicles – a remarkable achievement. Consumers have re-engaged into the market - now finding that inventory of several popular vehicles to be slimmer than expected.
Parts suppliers - dealing with increasing COVID restrictions in many regions are thus having difficulties finding qualified labor to keep up with demand. Absenteeism and employee turnover are at heightened levels.
These issues are not just in North America. Low inventories of microchips and semi-conductors from various locations in Asia are causing concern throughout the global industry. Just when the industry should be enjoying a volume revival – there is no rest for the weary. This has been Michael Robinet with an S&P Global minute.
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