• ABOUT – DICK YOUNG
  • YWMF – ARCHIVES

Young's World Money Forecast

Since 1978 With a 32 Year Vacation

  • DICK YOUNG
    • FROM RICHARD C. YOUNG
    • THE FINAL INTELLIGENCE REPORT
  • INVESTING STRATEGIES
    • RETIREMENT COMPOUNDERS®
    • GOLD & SILVER
  • DIVIDENDS & COMPOUNDING
    • MIRACLE OF COMPOUNDING
    • DIVIDENDS
  • GRAHAM & RUSSELL
    • BEN GRAHAM
    • RICHARD RUSSELL
  • THE DOW AND THE LEADERS
    • DOW vs. S&P 500
    • DOW vs. DOW DIVIDEND PER SHARE
  • WELLINGTON MANAGEMENT COMPANY
  • YOUR SURVIVAL GUY
  • BANK CREDIT & MONEY
  • THE PRUDENT MAN

Tech Ever More Important in the Auto Industry

June 10, 2021 By Richard Young

By Nibaphoto @ Shutterstock.com

The world has learned over the last year just how important computers are to the modern auto industry, as shortages of vehicles, or of vehicles with certain options, have been created by a lack of chips to put in vehicles at the factory.

An average 2021 automobile has around 1,400 chips in it. With so many chips necessary for each automobile, the shortage is going to take a toll on the industry, cutting the production of an estimated 3.9 million vehicles this year.

Part of the problem with chips is that factories are expensive, costing around $15 billion to build. And, they take a long time to complete, at around 5 years.

With computer chips becoming ever more integral to automobiles, and shortages hurting production, Ferrari has named Benedetto Vigna, currently a divisional president at STMicroelectrics, a French-Italian semiconductor manufacturer, its new CEO. The WSJ reports:

In announcing the appointment, Mr. Elkann cited Mr. Vigna’s “deep understanding of the technologies driving much of the change in our industry.”

The global chip shortage that has led to production delays in the auto industry is expected to continue for months to come. That has called into question the auto sector’s rebound as the severity of the coronavirus pandemic recedes in many countries.

The pandemic’s economic fallout has hit orders for Ferraris and other luxury cars. Ferrari issued a profit warning in May, saying that because of the pandemic it wouldn’t meet profit targets it had set for itself for next year. The company pushed back the target to 2023.

Mr. Vigna follows on the heels of Louis Camilleri, who ran Ferrari starting in July 2018 following the sudden death of Sergio Marchionne, who was CEO of both the fabled sports car maker and the former Fiat Chrysler group, now part of Stellantis NV.

Related

Filed Under: Investing Strategies

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS New From Young Research & Publishing

  • Graduating from Work to Retirement Special Bonus: God Only Knows
  • US Secures LNG Export Deals Worth $200 Billion
  • High-Voltage Cable Crunch Hits Global Electrification
  • May PPI Lower than Expected
  • Graduating from Work to Retirement #20: Life in Reverse
  • US Inflation Eases to 0.1% in May
  • DOE Focuses on Nuclear and AI Innovation
  • Trump Delivers Lower Inflation and Rising Wages
  • Natural Gas Power Growth Slows, but Big Gains Possible by 2028
  • Graduating from Work to Retirement #19: A Teacher for Life

RSS New From Your Survival Guy

  • Graduating from Work to Retirement Special Bonus: God Only Knows
  • Private Equity: Moody’s Warns There’s Ample Cause for Concern
  • Your Survival Guy: Castle Hill, Newport
  • Graduating from Work to Retirement #20: Life in Reverse
  • Graduating from Work to Retirement #19: A Teacher for Life
  • Market Timing Could Be Hazardous to Your Portfolio
  • Graduating from Work to Retirement #18: Shelter from the Storm
  • Beware Pig Butchering Scams
  • Do You Have a Survival Guy Portfolio?
  • Graduating from Work to Retirement #17: Heart of June

Search Our Site

Richard C. Young & Co., Ltd.

–Client Letter Sign Up–

Sign up to receive email alerts when our latest client letter is posted on our website.

Copyright © 2025 · About Dick Young · Terms & Conditions

 

Loading Comments...