Easing Pressure in the Supply Chain
Car sales are booming in the U.S., but the strain on the automotive supply chain is reaching a critical stage, says Sven Dharmani, principal in Advisory Services at EY.
With output so high, suppliers are losing their ability to maintain production lines and adjust output to pace an inherently volatile product mix, Dharmani says. More flexible tooling would help, but the industry is under enormous pressure to keep costs low.
The solution? Dharmani recommends fewer option packages and new processes that enable carmakers to forecast their needs 18-24 months ahead.
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If heritage means anything in this industry, then it is surprising that Buick doesn’t make more of its history because the story of the early years of the company is nothing short of astonishing.
Last year Buick sold 219,231 vehicles in the U.S.
What happens if that $2.29 a gallon goes up by a couple of bucks a year from now? How are the pickup, SUV and crossover sales going to be then?