Headaches and hope: 2021 a challenging, enlightening year for automotive

All the chaos and unpredictability that defined 2020 lingered all the way through 2021. And those lingering impacts of the COVID-19 pandemic were significant.

Shipping and logistics remain major headaches for manufacturers and suppliers alike, who are working to balance ledgers with skyrocketing materials and shipping costs. It's the issue that has defined 2021 for many in the plastics and rubber industries, and those in the automotive sector particularly.

But for every headache, there was hope. Great innovation also helped to shape 2021.

Manufacturers and suppliers committed to sustainability goals, designed products that met higher environmental standards and invested in creating solutions that kept next-generation vehicles safer.

Here's a look at some of the trends emerging in the automotive space this year.

Before December arrived, the auto industry hit a production milestone ... and it wasn't a good one.

According to AutoForecast Solutions, 10 million fewer vehicles than anticipated were made globally in 2021, a direct result of the microchip shortage.

That number was expected to eclipse the 11 million mark by the end of the year.

North America appears to be the hardest hit by the shortage, losing more than 3.15 million vehicles to the semiconductor shortage by Thanksgiving week, according to Automotive News data. Europe reported a loss of about 2.86 million vehicles by that time, while China and Asia reported losses of just fewer than 2 million each.

And while that was bad news for OEMs and dealers, it didn't hurt their bottom lines. This year, both auto makers and auto dealers reported record profits. Auto suppliers, meanwhile, flailed. Their profits are dependent on building more cars, and with 10 million fewer cars being made it's hard to sell parts. Add to that the skyrocketing materials and shipping costs, and it creates quite a challenge.

Mega suppliers Lear Corp. and Magna International Inc. both reported massive losses in the third quarter. Magna's net income plunged 97 percent compared to the same quarter in 2020. Cooper-Standard Automotive Inc. lost $123.2 million in the third quarter and set about trying to recoup at least $100 million through renegotiated contracts.

On the tire side, sales rebounded for the aftermarket, but OE struggled. According to the U.S. Tire Manufacturers Association's Dec. 2 forecast, projected total U.S. tire shipments will increase 10.8 percent this year to 336 million units. That's an improvement over 2020 and just 1 percent more than 2019's total of 332.7 million units.

Technology is redefining the automotive landscape, driving developments in autonomy, electrification and sustainability.

And when it comes to the testing and adoption of those technologies, the last-mile delivery space is leading the charge. The sector is the perfect proving grounds because the geographic areas in which the technology is tested are more manageable, said Carla Bailo, president and CEO of the Center for Automotive Research in Ann Arbor, Mich.

"The [fewer] variables you put into a route makes it more able to be autonomous or semi-autonomous and use different modes of delivery than a very complex situation of commuting somewhere or being in mixed traffic or mixed roadwork," she said. "That is why you are able to see the technology really start to blossom, and you perfect it in those kinds of situations."

Whether it is small, autonomous robots delivering meals to college dorms — in the case of Starship, a Goodyear-backed startup — or Amazon's electrified delivery vehicles brining packages to door steps, the future of the auto industry is blossoming in the last-mile space.

BEVs are coming. And supplier companies are working to ensure their safety.

Earlier this year, Freudenberg Sealing Technologies invested an undisclosed six-figure amount in special lab and testing capabilities at its Plymouth Central Laboratory designed to test the safety and durability of its products.

At the heart of the investment was a specially designed isolation and containment chamber (IsoC), measuring 6-by-3-by-3 feet. The two-chambered, glass and steel enclosure allows materials and products to be tested safely against the lithium electrolytic solutions found in lithium-ion battery cells.

The auto supplier claimed to be the first in the industry to provide the rigorous testing for its products. That's due to the ongoing investment costs. Just one gallon of the solution needed for testing could cost thousands of dollars.

"To my knowledge, none of our competitors have these testing capabilities," said Joe Walker, global technology director of materials and laboratories for FST.

Dow this year opened a pair of laboratory and testing facilities to help its customers more quickly create solutions designed for EVs. Located in Michigan and Texas, the labs are dedicated to NVH, sealing and under-the-hood applications. Each represent a multi-million dollar investment made over several years.

Overseas, DuPont Mobility & Materials is making investments of its own. It began work on a new manufacturing facility in China and is expanding capacity at sites in Schkopau, Germany, and Freienbach, Switzerland.