SUPPLIER EYE
- Magazine Article
- 21AUTP02_07
- English
We happily put 2020 in the rearview mirror and await the full rollout of the COVID-19 vaccines to gain some level of normalcy. The automotive industry once again underscored its industriousness and flexibility in the face of significant hurdles. Though output completely ceased for more than two months last Spring, it was successfully restarted under trying circumstances. Part/material shortages, logistics challenges and a constant search for talent amid an accelerated production pace have placed suppliers and OEMs alike into fire-fighting mode. Let's hope this is not the new normal.
The past year also will be remembered for several other developments. The need to reduce investment risk, limit capital exposure, diversify to new markets and move even faster on the technology front caused many OEMs and suppliers to continue seeking alliances, JVs and mergers. The formation of Stellantis, the combination of FCA and PSA, is already impacting procurement decisions and technology choices for suppliers with appreciable operations in North America. Expansion of the General Motors - Honda partnership into mass-market EVs will have similar effects.