Hyperdrive
Carmakers Forced by Chip Crisis to Rethink Just-In-Time Ordering
- Shortage shows big auto it can’t bully its newest suppliers
- Semiconductor makers want long-term, unbreakable commitments
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A century after automakers showed the world the value of assembly-line manufacturing, a shortage of semiconductors is teaching the industry a painful new lesson in what it takes to build a car.
For most of its history, the industry has relied on a distinct approach to buying car parts, procuring components from suppliers right at the moment they’re needed. It’s referred to as just-in-time manufacturing and is designed to streamline production and eliminate the costs of keeping warehouses stocked with parts waiting to be used.