Impacts of COVID-19 on Automotive Suppliers | Foley & Lardner LLP

Given that the original epicenter of the coronavirus was the important worldwide manufacturing hub of Wuhan, China, the automotive industry was swiftly and seriously impacted in ways that continue one year later. The global spread of COVID-19 has impacted the global economy and supply chains in ways not seen since the SARS outbreak in 2003.

The impact was acutely felt by automotive manufacturers, who build vehicles on a JIT (just in time) basis and depend upon a timely and uninterrupted supply of materials and components. In the case of manufacturing, it just takes one missing part to shut down a

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First microchips, now automotive suppliers risk shortage of seat foam

Carmakers attempting to navigate their way through a shortage of microchips while mitigating the effects of a global pandemic might have a new problem to worry about. The severe winter storms that left thousands without power and water in Texas in February 2021 also shut down the refineries that provide the raw materials in seat foam.

Getting to the root of the problem requires following a surprisingly long supply chain. Foam found in most car seats, under the upholstery, is often made with polyurethane, which is manufactured using an organic compound called propylene oxide. In turn, this industrial liquid is

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Billions Of Dollars To Be Made Post-Covid So Increase Bicycle Production, Specialized’s VP Tells Asian Suppliers

The Covid bike bump was not a blip, Specialized’s Bob Margevicius has told industry leaders, it’s the reality into the future. But, he warned, there’s now so little inventory in the market that demand will continue to outstrip supply, leading to lost sales.

“If you believe this is a bubble, it will be a self-fulfilling prophecy, and you won’t have inventory as demand outpaces supply in the years ahead,” Margevicius

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