Trentacosta Comments on Global Chip Shortage

12 February 2021 News

Partner John Trentacosta was quoted in a Wall Street Journal article, “How Car Makers Collided With a Global Chip Shortage,” about how the industry misjudged the supply lines of semiconductors that control engines, airbags, entertainment systems and other vehicle components.

 

Trentacosta, chair of the firm’s Complex Supply Chain Litigation Group, said some parts suppliers were skeptical that new-car demand would fully rebound from the coronavirus-related slowdown and were reluctant to order chips in the volumes the car companies directed. “A lot of suppliers didn’t think things were going to ramp up that quickly and just didn’t manufacture to full volumes,” he said. “And then all of a sudden, demand is back on in a big way.”

 

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