2021
DOI: 10.26509/frbc-ec-202117
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Semiconductor Shortages and Vehicle Production and Prices

Abstract: Vehicle production has fallen since the beginning of the pandemic recession. We investigate reasons for this decline. Manufacturers in this industry cite insufficient materials, including a lack of semiconductors, as increasingly responsible. Demand seems to be less of an issue. In fact, demand has been strong, and together with accelerating prices and sharply declining inventories, it suggests an insufficient supply of new cars. Our best guess is that the materials shortages and their effects on new car price… Show more

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Cited by 15 publications
(14 citation statements)
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“…Estimating the tyre force can be done in many ways, ranging from involving the tyre mechanics, involving the overall motion of the vehicle down to just use the wheel dynamics as stated in (1). Here we use the strategy of separating the force estimate from the estimate of tyre to road characteristics (given by the tyre models) and isolate the wheels from each other.…”
Section: Force Observer Designmentioning
confidence: 99%
See 1 more Smart Citation
“…Estimating the tyre force can be done in many ways, ranging from involving the tyre mechanics, involving the overall motion of the vehicle down to just use the wheel dynamics as stated in (1). Here we use the strategy of separating the force estimate from the estimate of tyre to road characteristics (given by the tyre models) and isolate the wheels from each other.…”
Section: Force Observer Designmentioning
confidence: 99%
“…This shortage could cost the automotive industry as much as $ 110 billion dollars per year. 1,2 Considering that this fact could also affect the vehicle motion applications, it is crucial to focus on optimizing the real-time algorithms.…”
Section: Introductionmentioning
confidence: 99%
“…The COVID-19 pandemic caused the collapse of the automotive sector in 2020, stopping production and causing plummeting sales [4], and has not recovered yet in 2022 [5]. This situation also provoked a semiconductor crisis [5][6][7]: chip shortages are holding back vehicle production and challenging the "justin-time" management philosophy [8]. New competitors are entering the sector: China is an emerging market and is leading electric vehicle (EV) adoption [9], to the point where there are so many players that the Chinese government has vowed to consolidate them in larger brands through mergers [10].…”
Section: Introductionmentioning
confidence: 99%
“…Owing to various reasons such as ongoing geo-political shifts, prevailing COVID-19 pandemic, supply chain specific phenomena such that shortage of semi-conductor chip across industries, it becomes imperative to investigate the interplay of production volume decision vis-a-vis product quality level (Ivanov, 2021;Krolikowski and Naggert, 2021). Further, price as a function of quality is another dimension that impacts production level and product quality level (Kian et al, 2021).…”
Section: Introductionmentioning
confidence: 99%