Chip Shortage Forces Automakers to Get Creative

The video discusses the ongoing chip shortage and its significant impact on automakers. It highlights how companies like Ford and VW are struggling, with assembly lines halted and fierce competition for chips. The Bloomberg Big Take explores why increasing chip production is challenging due to the industry's complexity and capital intensity. Automakers are adopting strategies like focusing on profitable models and making design tweaks to save chips, such as using analog speedometers and removing built-in navigation systems.

Which automaker has provided some of the most surprising guidance about the impact of the chip shortage?

• Toyota

• Ford

• Honda

• BMW

What is one reason why increasing chip production is challenging?

• Capital-intensive nature

• Simple supply chains

• Lack of demand

• Abundant resources

What is one strategy automakers are using to manage the chip shortage?

• Expanding into new markets

• Reducing production

• Focusing on high-margin models

• Increasing car prices

How are some automakers saving chips for other models?

• Adding more features

• Increasing car sizes

• Removing built-in navigation systems

• Using digital speedometers

What is a potential benefit for consumers due to the chip shortage?

• Longer wait times for cars

• Discounts on less tech-equipped cars

• Higher car prices

• More features in cars