Current Trends in the Automotive & Mobility Industry
- Sylwestrzak, Theodore B.
- Blogs
Want to get our alerts?
Click “Subscribe Now” to get attorney insights on the latest developments in a range of services and industries.
As post-COVID recovery accelerates, the automotive and mobility industry has been on an upward trajectory, rebounding faster than expected from the extensive shutdowns that began in March 2020. US sales have proven resilient, and most worldwide OEMs report their vehicle production is now 90% pre-COVID levels and growing.
Challenges, however, within the industry persist, and the supply base is increasingly fragile. Dickinson Wright’s Ted Sylwestrzak (Member, Detroit) recently moderated a panel presentation analyzing the current opportunities and headwinds in the automotive and mobility industry. The panel discussed various topics, including chip shortages, commodity shortages, and the future of vehicle electrification.
Challenges Facing The Supply Base
The auto supply base is increasingly fragile due to economic challenges and continued COVID impacts that have led to inefficiencies, volatility, and margin erosion. Every OEM and supplier was forced to take significant actions during the COVID shutdowns, and companies are still adjusting from the impact. Staffing shortages have resulted in excessive overtime and high wages, while production disruptions caused by material and component shortages, such as microchips, steel, aluminum, resins, and rubber, will most likely take the rest of the year to amend. Additionally, transportation costs and on-shoring resourcing activity have increased.
But there is good news: across the entire automotive supplier market analysis, profitability levels appear poised to hold in 2021 and even expand to 65% higher than 2020 levels by 2022.
Electrification Is Here to Stay
Despite industry challenges, one thing is certain – the path to vehicle electrification is coming sooner than anyone could have anticipated. Tesla’s success continues but faces competition from traditional OEMs, who have pledged over $200 billion in investments towards electrification. Well-known nameplates such as GM, Humer, Ford Mustang Mach-E, and F-150 Lightning have all joined the race to electrification, and VW launched its first all-electric vehicle in Europe in 2020. In North America, EV models are projected to approach 16% of total production by 2028.
However, US infrastructure has a ways to go to keep pace with the rapid changes – Americans drive a lot of miles, and charging stations are few and far between! But, there is no turning back from the inevitable. An emphasis on funding the installation of charging stations, coupled with current studies of EV battery minerals and microchips to build new manufacturing infrastructure, will accelerate vehicle electrification sooner rather than later.
For more information, contact Ted Sylwestrzak at Tsylwestrzak@dickinson-wright.com.
Challenges, however, within the industry persist, and the supply base is increasingly fragile. Dickinson Wright’s Ted Sylwestrzak (Member, Detroit) recently moderated a panel presentation analyzing the current opportunities and headwinds in the automotive and mobility industry. The panel discussed various topics, including chip shortages, commodity shortages, and the future of vehicle electrification.
Challenges Facing The Supply Base
The auto supply base is increasingly fragile due to economic challenges and continued COVID impacts that have led to inefficiencies, volatility, and margin erosion. Every OEM and supplier was forced to take significant actions during the COVID shutdowns, and companies are still adjusting from the impact. Staffing shortages have resulted in excessive overtime and high wages, while production disruptions caused by material and component shortages, such as microchips, steel, aluminum, resins, and rubber, will most likely take the rest of the year to amend. Additionally, transportation costs and on-shoring resourcing activity have increased.
But there is good news: across the entire automotive supplier market analysis, profitability levels appear poised to hold in 2021 and even expand to 65% higher than 2020 levels by 2022.
Electrification Is Here to Stay
Despite industry challenges, one thing is certain – the path to vehicle electrification is coming sooner than anyone could have anticipated. Tesla’s success continues but faces competition from traditional OEMs, who have pledged over $200 billion in investments towards electrification. Well-known nameplates such as GM, Humer, Ford Mustang Mach-E, and F-150 Lightning have all joined the race to electrification, and VW launched its first all-electric vehicle in Europe in 2020. In North America, EV models are projected to approach 16% of total production by 2028.
However, US infrastructure has a ways to go to keep pace with the rapid changes – Americans drive a lot of miles, and charging stations are few and far between! But, there is no turning back from the inevitable. An emphasis on funding the installation of charging stations, coupled with current studies of EV battery minerals and microchips to build new manufacturing infrastructure, will accelerate vehicle electrification sooner rather than later.
For more information, contact Ted Sylwestrzak at Tsylwestrzak@dickinson-wright.com.
Related Practices
Contacts

Theodore Sylwestrzak
Member, Banking and Financial Services Practice Group Chair
Detroit
Recent Insights
- April 11, 2022 In the News Elliot Vilders Joins Dickinson Wright Troy Office as a Member
- January 20, 2022 Video Mark Heusel Presents "North America's Drive Towards Electrification: How East Asia Factors into the Equation" Webinar
- November 3, 2021 Webinars Protecting Software Intellectual Property in Electric and Autonomous Vehicle Technologies
- November 03, 2021 Webinars Automotive Industry Electrification: Protecting Software Intellectual Property in Electric and Autonomous Vehicle Technologies | 電気および自動運転車技術におけるソフトウェアの知的財産の保護
- October 20, 2021 Webinars North America's Drive Towards Electrification: How East Asia Factors into the Equation
- October 20, 2021 Webinars Automotive Industry Electrification: North America's Drive Towards Electrification: How East Asia Factors into the Equation | 北米の電動化への動き: 東アジアではどうなるのか
- September 15, 2021 Media Mentions Bruce Thelen Quoted by El Financiero on USMCA Automotive Rules of Origin
- January 13, 2021 Webinars Automotive Update 2021: Opportunities and Headwinds Facing the Tech-Focused Automotive and Mobility Industry
- January 13, 2021 Media Mentions Theodore Sylwestrzak Presents at TMA Detroit "Automotive Update 2021"