The global semiconductor shortage could give rise to a surge in supply and resourcing disputes, but these can be avoided. By Michael Stocks and Matthew Padian
The road to recovery was always going to be bumpy. Whilst there are clear signs of a recovery in the car market as society emerges from the pandemic, demand is not being matched by supply. For example, such has been the global demand for semiconductors (the “brain” for every kind of electronic device), that shortages of these parts have slowed vehicle production lines and deliveries to the forecourt.
Any blockage in the supply chain inevitably puts a strain on each party’s obligations to meet contractual commitments. At best, this might cause a short delay in delivery of components. At worst, it could result in deadlines being missed, or the loss of trust between contracting parties leading to disputes. How then can companies mitigate the risk of such disputes arising as the sector attempts to navigate this bumpy road?
Key things to consider
It is important that any company reminds itself of what it has agreed to…