Re:Decoupling isn't phoney – The global trading system is st...
by bsder on Wednesday August 30, 2023 @02:52PM
(#37327056)
> Yeah, I'm not convinced, given GM's (and most automakers) reaction to Covid and the continuing chip shortage.
Automakers (and everybody else) reacted very quickly and shut down/decreased staff almost immediately.
Where they got caught out was in assuming that the semiconductor industry would return to normal quickly. That was a huge mistake.
Everything in business is so hyper-optimized to hold no inventory that nobody can absorb demand increase shocks of any amount, anymore. In addition, the fact the companies actively downsized during Covid meant that things couldn't even go back to pre-Covid levels quickly.
Automakers (and everybody else) reacted very quickly and shut down/decreased staff almost immediately.
Where they got caught out was in assuming that the semiconductor industry would return to normal quickly. That was a huge mistake.
Everything in business is so hyper-optimized to hold no inventory that nobody can absorb demand increase shocks of any amount, anymore. In addition, the fact the companies actively downsized during Covid meant that things couldn't even go back to pre-Covid levels quickly.