Register Today for Oct. 19 Webinar – The View from Asia
Attend SAA’s October 19 webinar where the Chinese automotive industry will be dissected by Michael Dunne, CEO of ZoZo Go, an advisory firm specializing in China’s electric and autonomous tech markets. Michael’s compelling views on the Chinese market have made him one of the SAA’s most popular speakers.
Save the Dates
Please save the following dates for upcoming SAA events:
- November 17, 2021: Exclusive event featuring Rivian (virtual event)
- December 7, 2021: Industry 4.0, Supplier Sourcing Strategies (virtual event)
- January 27, 2022: Automotive Outlook Conference (in-person event at Marelli in Southfield, MI)
Chip Shortage Expected to Cost Auto Industry $210 Billion in Revenue in 2021
With no end in sight, the semiconductor chip shortage is now expected to cost the global automotive industry $210 billion in revenue in 2021, according to consulting firm AlixPartners. The forecast is almost double it previous projection of $110 billion in May. The New York-based firm released an initial forecast of $60.6 billion in late January when the parts problem started causing automakers to cut production at plants.
Global Light Vehicle Demand Hit Hard by Supply Disruptions, Delaying Recovery by More than a Year
Just three months ago, consumer demand had been strong across most markets globally and Light Vehicle sales were expected to increase by more than 10 million units to 87.5 million. A global GDP growth forecast of 6.3%, supported by financial stimulus and the reopening of economies, was behind the projected volume increase. But as the Delta variant surged and the chip shortage persisted, the wind was taken out of the recovery sails. While we do still expect growth in 2021, the demand outlook has been cut by more than 6 million units, to 81 million, which represent just 50% of the growth back in June.
For Auto Industry, No Time to Rest
In 2020, auto manufacturing, like other industries, had to cope with a global pandemic. Plants were closed while new safety procedures were implemented to deal with COVID-19. Still, after factories resumed operation, the industry enjoyed strong demand, especially for trucks. By year’s end, things were humming. The industry didn’t get to take it easy this year, however. The pandemic remains while new short- and long-term challenges are hitting automakers and their suppliers.
Rivian is Coming. Here’s Why it Matters
Americans always have had exactly one choice when it comes to all-electric carmakers: Tesla. Starting this month, they will have another. Rivian Automotive Inc. rolled its first pickup truck destined for regular customers off its assembly line in Normal, Ill., last week, and first deliveries are coming soon. The vehicle is a milestone toward electric vehicles’ being, well, normal. But it’s not the only reason that Rivian matters. One reason is historic. If Rivian thrives, it will be only the third American automaker in a century to not to die by bankruptcy. The others are Chrysler, founded in 1925, and Tesla, in 2003.
Cyber Security: Considerations for the Next Generation of Connected Vehicles
Vehicles are fast becoming more software-enabled, cloud-connected devices – leading to advanced safety and performance features that benefit drivers around the world. This increase in connectivity brings new cyber security considerations that must be addressed – especially in two primary areas: Software that helps operate the car and its automated features; and personal data uploaded by the user.
The Path to Electrification: Consumers, Products and Enablement
In this on-demand presentation, IHS Markit experts share data-driven perspectives on the transition from ICE to EV and what it means for the consumer, new electric vehicle offerings, automakers' planned strategies, and the implications for suppliers and marketers. The speakers discuss the customer and who they are and will be as BEVs go from 2% of retail sales in 2020 to over 30% in 2030. They also address some of the exciting new products customers will have to choose from as we go from having 24 EV models to choose from to over 160 models in 2025 and more than 250 in 2030. And finally, the speakers explore what it takes to get there as we have to transform 100 years of manufacturing and supply chain know how on engines, transmissions, hoses and lines, to a world of chemistry, battery packs and electronics.
This presentation was scheduled to be presented at Motor Bella on September 22. The event was canceled due to severe weather.
One in Five Automotive Industry Leaders See Intelligent Systems as the Future Predominant Business Model
While the idea of the automobile was invented in the late 1800s in Germany and France, the true commercial revolution of the industry occurred in the 1920s in the U.S. There were 40 plus years of experimentation between 1880 and 1920, with different form factors such as steering sticks, drive systems, and even names (like the Stanley Steamer). Brands and technologies were secondary until the true mass production of one common form, and with that development in the 1920s came the exceptional volumes and growth rates that led to the tripling of registered drivers in the U.S. between 1920 and 1930.
Blockchain Strategies for Businesses are Gaining Popularity at Breakneck Speed
As more companies explore blockchain as a method to strengthen efficiency and enhance visibility within their supply chain, fluency in blockchain technology is becoming key. Foley’s “Blockchain in Supply Chain” series shines a bright light on the present and future of blockchain technology usage in supply chain. Click here to view the most recent entries in Foley’s series of “Blockchain in Supply Chain” articles that delve into the basics of blockchain, the applications of blockchain in supply chain networks, and legal developments in the blockchain space.
BMW Startles Investors With Raised Profit Forecast Despite Chip Crisis
BMW surprised investors with news it raised its profit forecast for 2021 to between 9.5% and 10.5% from its previous expectation of a 7 to 9% target, saying improved sales of its high-margin vehicles more than compensated for any semiconductor supply problems.
GM New Vehicle Sales Take Huge Hit in 3rd Quarter -- But Not All Models are Hurting
General Motors reported a deep decline in its third-quarter new vehicles sales amid its battle with a global shortage of semiconductor chips, which has left GM with unprecedented low inventory.
Ford’s Sales Improving, But Still Down by 27.4% in the Third Quarter
Ford’s U.S. vehicle sales showed signs of improvement during the third quarter, but still fell by 27.4% from last year as an ongoing shortage of semiconductor chips interrupted vehicle production.
Vehicle Supply Crisis Causes September U.S. Auto Sales to Fall to Their Lowest Level in 2021, Bringing the Recovery to a Halt
Greatly depleted inventories dragged down U.S. vehicle sales to their lowest level for the month of September since 2010, according to LMC Automotive. Automakers sold just under 1 million Light Vehicles this September, down by 25% YoY. The annualized rate fell to 12 million units, the same level registered in May 2020 and 1 million units under the August SAAR.
The Rising Resilient: How Workforce Resilience Will Enable Businesses to Thrive
In order for employers to maximize company performance, they must embrace the future of work – where multi-dimensional wellbeing, with an emphasis on emotional wellbeing, is interwoven throughout the organizational culture. Aon’s research shows that investment in wellbeing is linked to greater levels of resilience. Explore insights here.
As organizations in the manufacturing sector navigate The Future of Work; The Manufacturers Alliance in partnership with Aon surveyed leaders in the industry to evaluate strategy, barriers, and tactics for change management. Download the Future of Flexible Work in Manufacturing report to explore insights and benchmark your organization.
Why There Won't Be Another Success Story Like Tesla in the Automotive Industry
Electric-vehicle company Tesla has been an incredible investment, up a staggering 16,000% over the past 10 years. With returns like these, investors are understandably leaving no rock unturned in the EV space, hoping to find the next Tesla before it hits it big. Investors might be looking in the wrong place.