Implications of the chip shortage crisis on the automotive aftermarket
Even as the aftermarket grapples with a tight supply of collision repair parts, maintenance parts and services as well as aftermarket navigation and audio systems could get a boost.
The global shortage of semiconductors began a few months into the pandemic, setting off a perfect storm in the auto industry from Asia to Europe to the United States. Driven by the continued parts shortages caused by chip supply constraints, carmakers were forced to cut production with no early solution in sight. Volkswagen (VW) stopped production of various models in Europe, mainland China, and North America with 10,000 employees furloughed. Automakers such as General Motors, Ford, Toyota, Honda, and Subaru among others were forced to temporarily halt manufacturing, resulting in a lack of inventory.