Sitting

embedded technology to do things like measure heat and current. So you end up with significant problems.”

The panel shared a photo of the charred remains of electrical connectors inside a charging system installed some years ago by a California shop. The heat involved in EV charging also can lead to expansion and contraction, which can loosen connections over time.

“There is a certain amount of maintenance you’re looking at on these chargers,” said Oregon shop owner Ron Reichen. “You have to go in and retighten things from time to time.”

Darrell Amberson said his multi-shop collision repair company in Minnesota repairs a lot of EVs, and it’s not something shops should avoid.

“It’s no big deal. We’re still fixing cars,” Amberson said. “But on the other hand, it does require a difference from the start to the finish of the process. And every person in the organization has to have some different understanding, especially in terms of safety.”

A wise man once said it’s best to face the awful truth of your situation than to lie to yourself that everything is just fine.

Well, the automotive industry is in a bad place and has been since the pandemic shutdowns. One of the most shocking indicators of where we’re at now is the revelation General Motors is holding onto about 95,000 unfinished vehicles at the end of Q2.

Many news outlets are blaming the glut of unfinished cars, trucks and SUVs squarely on the microchip shortage, but they’re missing the big picture. Many raw materials and hence a whole array of components have been in short supply in the automotive industry since early last year. Try ordering enough car parts and you’ll find that fact out real quick.

Per a press release from GM, most of the unfinished vehicles it’s sitting on were assembled in June.

Consider this: according to a report from The Wall Street Journal, new vehicle sales in the U.S. fell about 17% for the first six months of 2022. However, demand for cars remains high, so the problem obviously is a constrained supply. With prices soaring in the new and used markets, that’s what we’d expect to result.

Other automakers have suffered all kinds of supply chain problems, ranging from shortages in microchips to constrained availability of glass and aluminum. Toyota, which in December returned to full production capacity, has since seen many manufacturing setbacks, resulting in a 19% drop in sales for Q1 and Q2 of 2022. Worse, Nissan saw a 34% drop while Hyundai Motor Co. said sales decreased 16%. Everyone is suffering.

Another problem is creeping up, one that threatens to make this industry tailspin even worse: rising interest rates. The Wall Street Journal report claims automaker executives believe despite this, sales should level out through at least the end of 2022. Beyond then, well things could get ugly, although automakers seem to think they don’t have that far to fall if a deep recession does strike. Where things could get even more complicated is the projection by Intel’s CEO and others that the chip shortage will last well into 2024. Even once the supply of chips returns to pre-pandemic levels, it will take some time to produce enough new cars to even out the auto market. Plus, shortages of other raw materials or manufactured components could still put the squeeze on production.

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