📊Executive Summary

The automotive semiconductor shortage, which began in December 2020, is expected to continue through the first half of 2021, impacting vehicle production significantly. Major automakers, including Ford, Toyota, and Volkswagen, are already adjusting their production schedules due to a lack of essential components like microcontroller units (MCUs) and power management ICs. The shortage is attributed to pandemic-related production halts and a surge in demand for electronics, which has strained the supply chain. As a result, global vehicle output is projected to decline by 4% this quarter, translating to a loss of approximately 100,000 vehicles. This situation necessitates close monitoring by procurement teams in the automotive sector to navigate the ongoing supply challenges effectively....