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Mike Thoeny, President of Flex’s Automotive Business Group, Shares Strategies for Strengthening Automotive Supply Chains

August 26, 2024 2 min read
author Anamika Mishra, Sub Editor
The automotive supply chain stands out as a significant risk factor compared to other industries. In 2021, nearly 45% of global automotive manufacturers reported supply chain disruptions as the primary reason for production halts. At Flex, data from thousands of companies and over 20,000 products reveals that automotive product parts face a 55% availability risk—more than double the industry average. Stockout risk, at 93%, further exacerbates the problem, threatening production continuity, customer relationships, and cost management. As next-generation mobility, driven by software-defined vehicles, transforms the automotive industry, the sector must address its readiness to meet new supply chain demands. The rising reliance on semiconductors adds complexity, with chip content per vehicle expected to double by 2030, according to Boston Consulting Group. KPMG’s survey shows that 45% of OEM executives outside China are deeply concerned about semiconductor availability, a concern mirrored in other critical areas like battery components and

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