The intersection 31-07-22 | Automotive News
|So many billions, so many changes|
There’s a quote on page 1 of this week’s issue – we’ve blown it up in large print so you don’t miss it – that is surely up for quote of the year.
It’s from Kristin Dziczek, automotive policy adviser at the Federal Reserve Bank of Chicago, and she comments on what the auto industry faces in the third quarter of 2022 as it climbs out of the hole of the global microchip shortage that cost millions of vehicles in production.
“Even if you had all the tokens you had in 2019,” Dziczek tells us, “you couldn’t build the same number of vehicles that you built in 2019 because there are more tokens per vehicle. And we don’t we don’t have all the chips yet that we had in 2019.”
We tell you this week that chipmakers and governments are now racing to spend unprecedented billions to make more chips in hopes of solving the problem. It’s heroic and amazing to watch. Last week, the US Senate passed legislation that will provide $52 billion to fight the crisis.
It will still take a long time to convert a world of good intentions and rolled up sleeves into factory production. But things are moving.
And things are also changing in the industry. In this issue, we present snapshots of the fundamental changes taking place around us. Not trends, not changes in consumer preferences. But real and lasting changes in how things are done and how things work. Lidar? Does anyone still think lidar is an idea for the future that may or may not gain widespread adoption? Alcohol Screening Equipment – Sounds Implausible? Well, it’s now enshrined in law. CO2 reduction in industry — an ongoing political debate? Not anymore.
This is the new reality of the automotive industry: we have entered an era where the technologies of the factories, the dealerships, the vehicles themselves, far exceed anything you have been comfortable with until now. . And it’s going to take an ocean of microchips to make all of this happen.
— Lindsay Chappell