The U.S. automotive industry is facing unprecedented supply chain disruptions that are impacting production schedules, pricing, and dealer incentives. The COVID-19 pandemic, semiconductor shortages, and weather events have exacerbated pre-existing supply chain vulnerabilities and challenges. In this article, we examine how supply chain disruptions are affecting the U.S. automotive industry and the steps being taken to mitigate the impacts.

COVID-19 Pandemic Impact

The COVID-19 pandemic has had a significant impact on the U.S. automotive industry, leading to temporary plant shutdowns, labor shortages, and reduced consumer demand. The pandemic has highlighted the fragility of the automotive supply chain, particularly the reliance on overseas sourcing, and the need for greater resilience and flexibility.

Automotive companies have had to implement health and safety protocols at their facilities, slowing down production cycles as each step of the process requires extra precautions. With the pandemic triggering sudden changes in customer behavior, automakers have also had …