Auto supply chains stretched thin
Parts shortages are forcing automobile manufacturers in the United States and Europe to temporarily idle some plants, according to Automotive News.
Auto industry supply chains are stretched thin because many suppliers sharply cut back capacity during the recession and haven't been able to quickly rebuild production to keep up with growing demand or have been reluctant to add equipment and workers while economic uncertainty persists.
The trade publication said Ford, Chrysler and Volkswagen have recently stopped production at plants for one week so that inventories for certain parts could catch up to levels for other components.
The shortages are most prevalent among smaller suppliers. Electronic components are hard to get because some suppliers closed plants for automotive products to focus on other business lines.
Auto supply chains stretched thin
