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New Auto Manufacturing Practices

New Auto Manufacturing Practices

Automakers are rethinking manufacturing amid chip shortages, supply shocks, and sustainability goals. From Tesla’s diamond-shaped factories to right-to-repair debates, innovation, adaptability, and smarter supply chains are shaping the industry’s next era.

February 1, 2022 4 min read Consumer Discretionary
New Auto Manufacturing Practices

Desperate times call for desperate measures. It may not yet be desperate times yet for the automotive industry. But those who spot the changing trends early and act fast tend to gain from it. Henry Ford made the linear assembly line popular in Detroit for the Model T. But the diamond shape seems to be the choice for Tesla. It apparently helped in least excavation of earth during factory construction, was north-facing to tap renewable energy and provides long stretches of assembly line. MIT Professor Yossi Sheffi warns about the sting of the bullwhip effect as demand springs back post the pandemic. Stockpiling of chips could lead to supply chain imbalance, according to Stellantis. One way to manage the chip shortage is to upgrade to new generation chips. The 'right to repair' could become a point to ponder over for auto business leaders, as the movement catches up from consumer electronics to farm equipment, faced by John Deere. Here are some interesting updates in new manufacturing practices in the auto industry to manage the challenges faced today.

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