Connected Car
At the start of the pandemic, most automakers slashed orders of nearly all the components of their vehicles in anticipation of a major drop-off in demand for auto sales. Now, a shortage of a relatively inexpensive chip could hold off production of a $50,000 car. KPMG saw that companies and manufacturers that use semiconductors cut production and trimmed earnings forecasts, with automakers clearly hit the hardest. Automakers are now looking at developing direct relationships with semiconductor makers, said Mark Wakefield, co-leader of AlixPartners'' global automotive practice. Instead of relying on tier-1 suppliers or on indirect supply-chain management, automakers should collaborate directly with semiconductor manufacturers.