The chip shortage came at an inopportune time for automakers as demand rebounded from pandemic lows due to low interest rates and consumers' preference for personal transport amid the health crisis. Ford Motor Co, a major customer for Lear and peers including BorgWarner and Magna International, has said the chip shortage would halve its vehicle output in the second quarter. Auto suppliers also cautioned that the pain from the shortage could linger at least until the next year. "On the biggest raw material purchases, we have about 60% pass through with our customers," BorgWarner Chief Executive Officer Frederic Lissalde said. And that's really an unknown," Magna Chief Financial Officer Vincent Galifi said.

Source: The Star May 07, 2021 19:30 UTC