Crisis as a Catalyst for Change: How automotive companies are thinking about and building a resilient supply chain capable of powering a future of electric vehicles

The global automotive industry faces a production loss of 6.2 million vehicles because of disruption in the semiconductor supply chain. It’s another example of how vulnerabilities in a supply chain that is often decentralized and built upon layers of suppliers can grind an entire industry to a halt. The microchip shortage, unfortunately, is also not the first time that auto manufacturers have faced massive production stoppages because of supply chain disruption. A 2012 explosion at a plant in Germany that was one of the largest producers of a resin used  to make fuel tanks, brake components and seat fabrics threatened to cripple global output. Similar disruptions were caused by the tsunami in Japan and a fire at another supplier facility, both in March 2011.