The New Normal in the Automotive Supply Chain


News

For immediate evidence of disruptions in the automotive supply chain, you need to look no further than your local dealer. Many lots are nearly empty of new vehicles, with average dealer inventories across the U.S. far below the normal 50–60 days’ supply. How did this happen?

Of course, the COVID-19 pandemic is a major part of the problem. When automotive production was abruptly halted in March, there were not any new vehicles being produced until early May. Even then, production has been proceeding in fits and starts. At the same time, consumers have continued to purchase vehicles, keeping auto demand surprisingly strong in an uncertain economy.

Read full article.

More Topics

Data-Driven Operational Strategies in the Pandemic Era

As state economies struggle between surging cases of COVID-19 and intense pressure to reopen — albeit with varying degrees of restrictions — companies that reduced or halted operations in response to stay-at-home orders are torn between the urgent needs to both restore revenue streams and to ensure the safety of...

2020 Top States for Doing Business Showcase Their Pro-Business Environments

It would be easy to look at current economic statistics and conclude that we may as well remove words such as “business growth” and “expansion” from our collective vocabularies for the time being. On a macro level, the economy is anything but healthy, thanks to the coronavirus. And yet there...

The Next Recovery: Regional Leaders & Laggards

To call the road that most metro areas have traveled this year rocky would be akin to labeling Mount Everest a speed bump. But the most turbulent period of our lifetimes will eventually give way to a sustained recovery. And when it does, certain types of metro areas are in...