What the Chip Crisis Means for the Auto Industry

The video discusses the ongoing chip crisis affecting the global auto industry, highlighting its impact on production and prices. Toyota, initially thought to have managed the crisis well, is now facing plant closures due to chip shortages. The crisis is exacerbated by shutdowns in Southeast Asia, particularly Malaysia, affecting companies like Ford. The auto industry is lower in priority for chip makers, leading to supply chain challenges. The crisis has led to unprecedented increases in car prices, with used cars now valued higher than before.

What was Toyota's initial strategy to handle the chip crisis?

• Increasing car prices

• Reducing car production

• Stockpiling chips

• Switching to alternative materials

What recent event has exacerbated the chip crisis in Southeast Asia?

• A trade embargo

• A natural disaster

• A delta outbreak

• A labor strike

Why are automakers lower in the priority list for chip makers?

• They require less sophisticated chips

• They pay less for chips

• They have fewer orders

• They have alternative suppliers

How has the chip shortage affected the prices of used cars?

• Prices have increased

• Prices have remained stable

• Prices have fluctuated

• Prices have decreased

What is one reason for the increased demand for cars post-pandemic?

• Desire for personal transportation

• Increased interest in shared transportation

• Government incentives

• Lower fuel prices