As of Dec. 21, 2025, U.S. auto manufacturing faces a “perfect storm”: falling orders, rising costs, Chinese competition, chip shortages, and tariffs are pushing smaller suppliers toward bankruptcy into 2026. These pressures threaten production disruptions and higher vehicle and parts prices. While the auto parts market may reach $754.5B by 2033, near-term risks remain. Manufacturers are responding by diversifying sourcing, automating with AI, and adapting to EV and sustainability shifts.
https://supplychaindaily.news/post/2025-12-21-supply-chain-update/