Supply chain disruptions
The last few years have created a perfect storm to disrupt
supply chains. COVID-19 shutdowns caused decreasing demand in certain
industries in 2020. With fewer people on the road and cars generally getting
less use, there was a decrease in the need for vehicle parts. Then, an ice
storm in February 2021 knocked out plants and factories across the South, the
Suez Canal was blocked for six days in March 2021 and people began to return to
a more normal level of driving, which caused increased demand but decreased
supply. The auto industry has been one of the hardest-hit sectors. “Parts are
more expensive, labor is more expensive and repair costs overall are more
expensive,” Ellis says.
Perhaps the most evident of these vehicle-related supply
chain disruptions was the difficulty in obtaining semiconductors.
Semiconductors, often called “chips,” are used in a wide array of vehicle
applications, including driver assistance systems, entertainment systems and
electronic mechanisms. In December 2021, over 50 business leaders — including
executives from American Honda Company, Ford Motor Company, General Motors and
Toyota Motor North America — sent a letter to Congress urging the governing bodies
to encourage the U.S. to create its own
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