How Shanghai Lockdowns Are Changing the Auto Industry

While the semiconductor shortage was long considered the excuse par excellence for why the automotive sector couldn’t produce enough vehicles during the pandemic, some manufacturers have begun pivoting to blaming supply chains that have been stymied by Chinese lockdowns. Toyota is probably the best-known example. But the matter is hardly limited to a singular automaker and market analysts have already been sounding the alarm bell that strict COVID-19 restrictions in Asia will effectively guarantee prolonged industrial hardship around the globe.

Back in April, Shenzhen was emerging from a month-long lockdown. However, the resulting downtime severely diminished the tech hub’s output which exacerbated global component shortages. While Chinese state-run media claimed regional factories maintained full-scale production during the period, the reality was quite a bit different. Meanwhile, Shanghai has remained under harsh restrictions since March and more look to be on the horizon. As an important industrial center and the world’s busiest port by far, the situation has created an intense backlog of container ships that are presumed to create some of the sustained problems that we’re about to explore.

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  • MaintenanceCosts Uh-oh. This is the same mistake Lexus made with the LS 500. People like their large luxosedans stately, not sleek, and you can't make up the difference by making them bigger.
  • FreedMike In the words of my old copyediting prof: "Accuracy! Accuracy! Accuracy!"
  • Eric Here’s a couple of pics.
  • Eric The shock towers have the typical rust, the body is very straight surprisingly , little surface rust at the bottom of the quarter panels but not too bad. The interior isn’t as bad as it looks, I’ll throw on a dash cover and I think it will clean up nicely. I’ve owned an MN12 for almost 20 years now, this is my first fox platform, it’ll be a great restoration project!
  • EBFlex So all the reasons that were present and caused Ford to substantially raise prices less then a year ago are no longer present? What changed? Does it still cost Ford $25K more to make a fake Mustang than it does a comparable Edge? “The Michigan-based company cites “significant material cost increases,”  supply chain issues and changing demand for the new higher prices. ”So those issues are solved?